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;
Railroad
^
te c h n o lo g y
and M a n p o w e r
^
n the 1970’s
Bulletin 1717
j.S. DEPARTMENT OF LABOR
bureau of Labor Statistics
Payton & Montgomery Co.
Public Library
MAY 191972
DOCUMENT COLLECTION
R ailroad
T e c h n o lo g y
and M anpow er
in the 1970’s
Bulletin 1717
U.S. DEPARTMENT OF LABOR
J. D. Hodgson, Secretary
BUREAU OF LABOR STATISTICS
Geoffrey H. Moore, Commissioner
1972
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $1
Preface
This bulletin describes changes in technology in the Railroad Industry, one of
the major industries of the economy, projects their impact on productivity, em
ployment, and occupational requirements, and discusses methods of adjustment.
It is one of a series of reports designed to help meet the requirement of the M an
power Development and Training Act that the Secretary of Labor “evaluate the
impact of and benefits and problems created by automation, technological prog
ress and other ch'anges in the structure of production and demand on the use of
the Nation’s human resources; establish techniques and methods of detecting in
advance the potential impact of such developm ents;. .
The study was based on discussions with company, union, and government
officials and with railroad equipment manufacturers. It was based also on attend
ance at conferences and exhibits as well as on information obtained from Bureau
sources and others in government, and on trade and technical publications. The
Bureau of Labor Statistics is deeply grateful to many individuals who furnished
valuable information and reviewed and commented on the draft of this report.
Special acknowledgement for photographs is due the Association of American
Railroads, Reading Lines, Western Maryland Railway, Louisville and Nashville
Railroad, Santa Fe Railway, Norfolk and Western Railway, Seaboard Coastline
Railroad Company, Illinois Central Railroad Company and R a ilw a y A g e.
This bulletin was prepared by Richard Johnson under the supervision of
Morton Levine. Mable Elliott prepared the material on communications and
assisted in the research and the preparation of statistical material for many parts
of the report. The chapter on worker adjustment is based on research materials
collected by Audrey Freedman and Kenneth Levin. The study was made in the
Office of Productivity and Technology under the general direction of John J.
Macut, Chief of the Division of Technological Studies.
Ill
CONTENTS
Page
Summary and H ighlights.............................................................. ............................................................................
1
Chapter I. The Changing Railroad In d u stry .............. ..........................................................._
........................
Definition of the industry ..........................................—..................................................................................
The railroad industry— a coordinated sy stem ................................ -.............................. ...........................
Relationship to other industries......................................................................................................................
Changing competitive position of the ra ilro a d s..........................................................................................
Freight traffic ............................. ........................................ ......................................................................
Passenger traffic........................................................... .................................................. ..........................
Changing structure of the in d u stry ...............................................................................................................
Marketing and managerial ch a n g es...............................................................................................................
Investment and modernization .............. ...... ................. ..............................................................................
Research and developm ent................................................................................................... .........................
5
5
5
6
6
7
7
8
8
9
11
Chapter II. Technological Change in the 1960’s and 1970’s ...... ..... ........................................................
Background ............................................................................................................ .........................................
Motive power developments ............................................. .............................................................................
Freight car improvements ...................... .............................................................. .........................................
Shop facilities: relocation and im provem ents...............................................................................................
Piggyback traffic and unit trains ....................................................................................................................
Automatic classification y a rd s ....... ....... ...................... ...... ..... .....................................................................
Computers .......................................................................................
Signaling and communication im provem ents...............................................................................................
Detection devices____ „..................................................... ......................................................................
Microwave ................................. ...... .......................... .............................................................................
Automatic car identification .................................... ......................................... ...................................
M aintenance of way changes..........................................................................................................................
Passenger serv ice...... ..... ....... ............................................ .............................................................................
13
13
13
18
23
24
25
27
30
31
31
32
32
34
Chapter III. Productivity and Other Measures of Technological C h an g e...................................................
Output per m an-hour .;................................................................................ ..................................................
Capital and output per unit of capital ..........................................................................................................
Output and material in p u ts ..........................................................................
Selected equipment utilization m easu res........................ ............................................................................
35
35
37
37
37
Chapter IV. Employment Trends .........................................
Employment trends ......................................................................................
Employment sh ifts........................................... r.......................................................................................
Characteristics of the railroad w o rk fo rce....................................................................................................
Distribution of em ploym ent................................................
Women employed by ra ilro a d s.............................................................................................................
Age ..............................................................................................................................................................
Employment of Negroes and Spanish-surnamed A m erican s............. ...........................................
41
41
41
41
41
42
42
42
V
Contents— Continued
Page
Chapter V. Employment Outlook and Impact of Technological Change on Occupational Structure
Employment outlook .........................................................................................................................................
Trends in freight traffic ....................................... ...................................................................................
Trends in passenger traffic ...... ................................ .................................................. .........................
Changes in occupational structure, 1957 and 1967 ..........................................................................
Technology and occupational tre n d s ...... ..................................-..................................................................
Redieselization ............................................................................ ........................................ ..........................
Improved cars ...... .......................... ...................................................................................................................
Shop facilities: relocation and im provem ents.......... ..... .......................... ...................... ...........................
Unit trains and piggyback traffic .......................................... .................... ....................................................
Automatic classification y a rd s ....................................................... ............. .......................... ........................
Computers ........................................... ....................................... ..... ............... .............................................. .
Centralized traffic control ............... ............................................... ...............................................................
Detectors, microwave and automatic car identification............................................................................
M aintenance of way innovations ....................... ..................... .......... ............. ...........................................
Passenger service ch a n g es............... .................... „ .................... ...................................................................
Other employment and occupational changes not related to a specific innovation ....................
45
45
45
45
46
46
47
48
49
50
51
52
53
54
56
57
58
Chapter VI. Adjustments to Technological Change, Working Conditions, and E arn in g s..............
Collective bargaining and adjustments to technological change ................................... ....................
Adjustment techniques ..________________ ______________________________________________
_
Advance notice ..... .............. ............................... ..................................... ..............................................
Job sec u rity ............. ................. .......................... ....... ........... .................................................................
Crew size regulation ..............................................................................................................................
Transfer rig h ts...................................... .............. ............... ...... ...... „ ....................................................
T ra in in g ____ ____ ___________________________ _ ______ _ ____________ _____________
_
_
Limitations on subcontracting___ ___ __________________________ ___________ __________
Displacement allow ances................................................... ............ ............... ........................................
Severance or dismissal allow ances.............. ..................... ........... ...... .................................................
Unemployment b en efits......... ........... ............................................ ...... .................................................
Retirement ................................. ..................... ............. ..... ............. ........................................................
Earnings and working conditions ....... ........... .......................................................... ..........................
61
61
62
62
62
62
63
63
64
64
65
65
66
66
Tables:
1. Ton-miles of shipments— means of transport and commodity, 1967 ...........
2. Gross product originated in transportation, by mode, selected years, 1947-69 .......
3. Percent distribution of total estimated intercity ton-miles of freight, by mode, selected
years, 1939-69 ......................... ............ ............................................................................................
4. Distribution of intercity passenger traffic in the United States, by mode, selected years,
1949-69 __ _______________________________________ ________ ________ __________
5. Commodities carried: Class I railroads, 1968 ...................
6. Percentage distribution of gross capital expenditures of Class I railroads, by category,
1956-65 .............................................................................. ...... ....... ....... ........... .
.....................
7. Percentage distribution of age of industrial capacity, spring 1962 and December 1966 .........
8. Research and development related to railroad industry, selected years, 1960-66 ..................
9. Technological change in railroads, 1957-67 and outlook, 1975-80 ............................................
VI
6
7
7
8
9
9
10
11
14
Contents— Continued
Page
10.
11.
12.
13.
14.
15.
16.
17.
Specialized freight cars, by major class, 1957 and 1967 .................................................................
I.C.C. approved piggyback plans, unit terminations, and revenues, first six months,1968 ....
U.S. automatic classification yards ...................................................
The age of operating computers, railroads and other industries, 1965 ......
Track miles controlled by block signal and CTC systems, selected years,1957-68 .............
Miscellaneous detectors installed, by year, 1960-67 .....................................................................
Degree of maintenance of way mechanization, by operation, 1969 .........................................
O utput per man-hour (R TU ’s): Ratios for “best” railroads in a district and industry aver
age, 1^56-66 .............
Value of road and equipment, number of employees, all U.S. railroads, selected years,
1948-67 ...............................................................................................................................
Freight equipment utilization, 1957 and 1968 ......................
Revenue and nonrevenue ton-miles per ton of capacity, Class I railroads, selected years,
1955-68 .....................................................................................
Class I railroad employment and traffic, selected years, 1947-69 .....
Age distribution of railroad employees, 1957 and 1967 ..............................................................
Estimated retirements, by occupation, 1967-75 ............................................................................
Railroad employment of minority groups, 1966 ............................................................................
Changes in Class I railroad employment, by major occupational group, 1957-67 .............
Occupational categories with greatest employment decreases, 1957-67 ..................................
Employment by innovation group, 1957, 1967, and outlook for 1975 ....................................
Employment and occupational changes related to redieselization, 1957-67 ...........................
Estimated maintenance man-hours for selected diesel locomotive se rie s..................................
Employment and occupational changes related to improved cars, 1957-67 ..........................
Employment and occupational changes related to facility relocation and improvements,
1957-67 ................................................................................................................................................
Employment and occupational changes related to use of automatic classification yards,
1957-67 .....
Employment and occupational changes related to use of computers, 1957-67 ...............
New railroad job titles associated with use of computers ..................
Employment and occupational changes related to centralized traffic control, 1957-67 -----Employment and occupational changes related to detectors, microwave, and automatic car
identification, 1957-67 ..............................................................................................................-.......
Employment and occupational changes related to maintenance of way innovations, 195767 ...........................................................................................................................................................
Employment and occupational changes related to passenger service, 1957-67 .......................
Employment and occupational changes, not related to specific innovations, 1957-67 .........
Hours and earnings of workers in manufacturing and Class I railroads, 1947, 1957, and
1960-68 ................................................................................................................................................
Average straight-time pay, by occupational group, Class I railroads, 1957 and 1967 ......
Employee compensation, Class I railroads, 1965 ............................................................................
19
24
28
30
31
32
33
1. Number of locomotives, by type, and percent of total, selected years, 1947-67 ..................
2. Car set-outs per million car-miles, 1955-70 .....................................................................................
3. Piggyback freight carriage, 1955-69 ...................................................................................................
18
22
25
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
36
37
38
39
42
42
43
43
46
47
48
48
49
49
50
51
52
53
54
54
56
57
58
67
67
67
Charts:
VII
Contents— Continued
Page
4. Railroads: output and output per man-hour, 1947-70 ....... .................. ...................................
5. Fuel requirements per gross ton-mile in Class I, linehaul railroads, 1948-66 .........................
36
38
Appendix:
I—
1. Railroads and other transportation new plant and equipment expenditures,1945-70 ..............
1-2. Class I railroads, methods of financing, by y e a r .............................................................................
II— 1. Locomotives in service, by type, 1947-67 ..............................................
I I - 2. Piggyback freight carloading of 1 or more trailers, 1955-69 .........................
II— 3. Automatic car identification (A C I) applications .............................................................................
III—
1. Alternative productivity forecasting technique ....................
III—
2. Methodological note on output per m a n -h o u r.... ......................
III— 3. Railroad transportation-revenue traffic (SIC 401) output per m an-hour, unit labor re
quirements, and related data, all employees, 1939-70 .......... ....................... ..... .......................
III— Railroad transportation-revenue traffic (SIC 401) output per man hour, unit labor re
4.
quirements, and related data, production workers, 1939-70 ..................................... ..........
III— 5. Leading railroads ........
III— Revenue traffic units per man-hour for railroads and industry, 1965 ...........................................
6.
III— Road and equipment, constant dollar value se rie s ......... .......................
7.
III— 8. Product and input value in U.S. railroads, 1947-68 ..........................
III— 9. Methodological note on derivation of total fuel requirements and efficiency
..........
III—
10. Fuel consumed by Class I line-haul railways per gross ton-mile, selected years, 1948-66 ....
IV— 1. Concentrations of railroad employment, 23 leading SMSA’s, March 1957 and M arch 1967
IV— 2. Changes in composition of SMSA’s, March 1957-67 ....
V— 1. Railroad unions ..................................................................
69
70
71
72
72
75
75
B ibliography............................................................................................................. ..................................................
86
V III
76
77
78
79
79
80
81
82
83
84
85
Summary and Highlights
The railroad industry is an excellent example of
an industry that has undergone technological change
almost continuously since its inception in the early
19th century. These changes, as well as railroad
mergers, consolidations, line and facility abandon
ments and passenger train discontinuances, have
often contributed to increased output per man-hour
(productivity) and frequently have had im portant
manpower and employment implications.
This report examines the technological changes
that are currently affecting the industry and evalu
ates their future impact on productivity, manpower
and labor-management relations. The following sum
mary highlights the major elements of the report.
Technology in the 1970’s
Modernization of the railroads in terms of adop
tion of technological advances in equipment, proce
dure and plant, advanced management techniques
and an enterprising approach to the marketing of
rail services has recently enabled the industry to
achieve and maintain a relatively stable share of all
intercity freight traffic. The degree of this trend to
ward modernization differs among the various rail
roads, influenced to a large degree by the availabil
ity of capital.
During the 1970’s one of the more important
technological advances in the industry will be the
widespread use of computers. This change will per
mit the continued diffusion of the automatic car
identification system (A C I), and will allow for im
provements in other areas such as recordkeeping.
Basically the ACI system accounts for the where
abouts of cars and their contents by rthe computer.
ACI will make it easier to establish regional control
points for keeping inventories of cars owned by sev
eral roads. With growing use of computers for train
operations such as dispatching and scheduling, train
mileage under centralized traffic control (C TC ) will
probably also continue to increase. The number of
automatic classification yards with reliance upon
computer control of retarders for braking and
switching of cars also is likely to grow. Route mile
age of railroad microwave is likely to expand
greatly because of the growing volume of data, voice
message traffic, and facsimile transmission. The diffu
sion of the more powerful and more maintenancefree second generation diesel locomotives will con
tinue through the 1970’s; by 1975, these may
account for two out of every three locomotives,
compared with one out of every four in 1967. Piggy
back transportation may possibly reach 1 V i to 2 mil
lion carloadings by 1975, up from about 1.3 million
in 1969; the use of unit trains, another form of expe
dited freight transportation is expected to grow over
the same period. Mechanization of maintenance-ofway activities will continue to .increase because of
growing use of multipurpose machinery and up
grading of other tools which the work force will use.
Potential for productivity growth
For the past 20 years, output per m an-hour in
the railroad industry has increased rapidly, placing it
among the industries with the highest average in
creases in productivity. During the 1947-60 period,
the average change was 4.3 percent per year. D ur
ing the recent 1960-70 period, output per man-hour
has increased more rapidly than over the 1947-60
period— averaging 6.0 percent annually. This higher
rate of increase is expected to continue into the
early 1970’s. Among the sources of productivity
growth are the widespread diffusion of technological
developments noted earlier.
In addition, increases in capital efficiency result
ing from larger capacity, longer trains, and more
powerful locomotives, as reflected in various indica
tors such as car-miles per car-day and gross tonmiles per train mile, also point to continued gains.
The number of miles a car can travel each day and
its level of gross-ton-miles per train-mile are ex
pected to continue to rise because of the wider dif
fusion of more powerful second-generation diesels
and the increasing use of light weight, specialized
freight cars. The relatively new practice of using un
1
2
manned remote control locomotives in the middle of
long trains will also contribute to the anticipated
rise in gross ton-miles per train mile.
Traffic prospects
After World War II, freight traffic fluctuated
around a level which, although nearly double its
prewar volume, was substantially below wartime
traffic. However, from 1961 through 1969, the
amount of freight carried by the railroads rose
sharply, surpassing previous records established dur
ing World W ar II. Even though this upward trend is
likely to continue, the railroads may not be able to
increase their relative share of freight traffic carried,
which was about 41 percent in 1968 and 1969 after
having remained at about 43 percent over the
1961-67 period.
Long-haul (noncom m uter) railroad passenger
traffic continued its long-term decline during the
1960’s. The possibility of reversal of this trend de
pends on many factors, including the successful out
come of such innovations as the operation of high
speed corridor trains like the Penn-Central Metroliner and “A m trak,” The National Railroad Passen
ger Corporation now operates most of the country’s
intercity passenger trains.
Employment outlook
Employment in the class I railroad industry had
dropped to 578,277 workers in 1969, from nearly
1.4 million persons in 1947, because of new devel
opments in technology, competition from other
modes of transportation, mefgers, and consolida
tions. Total employment is expected to decline fur
ther even if the economy continues to grow at its
long-term average rate. Nevertheless, an estimated
235,000 job openings are expected, as a result of
the num ber of retirements, between 1967 and 1975.
However, in spite of declining employment levels,
the unemployment rate in the industry is lower than
for the economy as a whole, reflecting, in part, pre
vailing worker adjustment provisions found in unionmanagement agreements.
Occupational trends
Since 1957, the most recent and relevant period
in terms of occupational change, declines in employ
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
ment have taken place in every m ajor occupational
group in the industry. However, the proportion of
total employment represented by specialized and
high-level manpower has tended to rise. Employ
ment in selected professional and clerical occupa
tions has been rising because of changes such as the
introduction of the computer, and new directions in
management and marketing operations. In the case
of skilled labor, where proportionate declines have
occurred, these changes have been relatively small.
Occupations requiring little formal education, train
ing, or experience, such as helper or laborer, have
been most adversely affected.
Women employed by railroads
Since the end of World War II, women have rep
resented about 6 percent of total railroad employ
ment and about three-fourths of them work in office
occupations. Because the impact of technology and
other changes on office employment has been less
severe than on class I railroad employment gener
ally, and because of the increasing need for operat
ing data, employment prospects will continue to be
relatively good for women.
Minority group employment
Employment prospects for minority group work
ers are improving. Shortages of employees in various
technical fields are likely to continue, opening
many opportunities for higher-level employment to
qualified employees, including members of minority
groups. At present, Negroes and persons with Span
ish surnames make up a relatively small proportion
of railroad employment and are found mainly in
blue collar jobs (often as operatives or laborers)
and in service occupations.
Adjustment to technological change
Adjustments to problems arising from technologi
cal change are covered by an extension of some
principles and provisions of the “Washington Agree
ments of 1936,” originally designed to protect em
ployees faced with layoff because of consolidation
and coordination of facilities. Only since the 1950’s
have specific provisions for such problems been in
cluded in nationwide contracts, notably in those
covering nonoperating shopcraft and nonshopcraft
SUMMARY AND HIGHLIGHTS
employees. These contracts include a number of
protective provisions: advance notice of proposed
technological change; moving allowances, and re
training rights and benefits. They include also var
ious guarantees of job security, like crew size regu
lations, transfer rights, limitations on subcontracting
3
of work and provisions for shorter work periods; in
come maintenance plans; and unemployment and re
tirement benefits. Resolution of worker adjustment
problems arising from technological and related
changes may continue to be a key determinant in
the railroad industry’s future development.
Chapter I.
The Changing Railroad Industry
The railroad industry, for nearly a century the
Nation’s primary means of shipping freight, em
ployed about 578,000 workers in the class I sector
or about one out of four transportation employees
engaged in intercity commerce in 1969.1 Like many
other old and established industries, the railroads
have gone through various phases of rapid growth,
stability, decline, and revival. Due to competing
modes of transportation, railroad passenger traffic
has declined precipitously since the close of World
W ar II. Trains now rank below the private automo
bile, bus, and air transportation as a carrier of pas
sengers. Nevertheless, the railroads carried a higher
proportion of ton-miles of freight in 1969 than any
other mode of transportation, even though their
share of freight business has been dropping since
1947. (See tables 2 and 3 for detail.)
This chapter briefly defines the industry, describes
its relationship to other industries and sets forth its
changing competitive position. It provides the back
ground for subsequent chapters on technological in
novations and their implications for productivity,
employment, job requirements, training needs, and
manpower adjustment procedures.
Definition of the Industry
The industry (SIC 4 0 ), includes companies
mainly engaged in line-haul railroad operations
(SIC 4 0 11), such as electric railroads and interurban railways and the building, rebuilding, and re
pairing of locomotives and cars by railroad compa
nies. It also includes switching and terminal
companies (SIC 4 0 1 3 ), which provide terminal fa
1 The study is concerned with class I railroads, of which
there were 76 in 1968, defined by the Interstate Commerce
Commission (ICC) as companies reporting average reve
nues of $5 million or more for 3 years, consecutively.
These railroads account for 87 percent of total railroad
employment and 98 percent of total freight revenue tonmiles.
2 The Pullman Company, which has long been the prin
cipal company in the industry (SIC 4021), turned over its
sleeper service to the railroads as of Jan. 1, 1969.
cilities for passengers and freight in line-haul service
and which move railroad cars between terminal
yards, industrial sidings, and other places. Also, it
includes companies operating sleeping and other
cars to furnish berths and seats to passengers, and
companies furnishing dining car service (SIC
2021) 2 as well as railway express service (SIC
4041). The railroad transportation industry does
not include railway companies that provide com
muter services only within a single municipality,
contiguous municipalities, or a municipality and its
suburban areas. Railroads are primarily engaged in
providing freight and passenger transportation, but
in carrying out this function, their varied activities
also include manufacturing of railroad cars and
other equipment they use as well as a construction
program that carries out m ajor capital improve
ments.
The railroad industry— a coordinated system
One of the salient features of railroad technology
is the ability of the industry to function as an inte
grated system, because of standardization of equip
ment and track achieved in the last half of the 19th
century. Previously, there had been 24 different
gauges of railroad track with widths ranging from 2
to 6 feet. When a shipment moved from one com
pany area into the territory served by another,
freight and passengers were necessarily transferred
to different cars, resulting in a great deal of unload
ing and reloading. Today, use of standard track and
cars, assisted by modern communications, expedite
integrated operations by several hundred companies.
Cars of industry-approved design equipped with
standard coupling arrangements shuttle from one
part of the country to another by the switching of
whole carloads at interchange points. The most im
portant result of this standardization is to permit the
industry to operate nationwide some 28,000 loco
motive units, 18,000 passenger train cars and more
than 1.8 million freight cars over a nationwide sys
tem of 320,000 miles of track.
5
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
6
Relationship to other industries
Changing competitive position of the railroads
In 1969, class I railroads originated (were the in
itial carriers), 1.5 billion tons of freight and trans
ported 296 million passengers. Despite the rise of
other methods of transportation, railroads remain
the crucial link in the nation’s system of production.
Any prolonged interruption in rail service would
curtail operations in many of the country’s largest
industries, where they connect various stages of pro
duction. For example, trains haul iron ore from con
centrating plants to furnaces, steel slabs from pri
mary casting facilities to rolling mills, and alumina
from initial refining plants to reduction or smelting
plants. Electric power production belies to a great
extent on coal hauled by railroads from the mine.
Railroads also represent the major mode of trans
portation for moving the goods produced by many
industries. F or example, in 1967 over 50 percent of
ali product ton-miles were carried by the railroads
in the following industries: Food and kindred prod
ucts; tobacco products; lumber and wood products;
pulp paper and allied products; stone, clay and glass
products; chemical and allied products; primary
metal products; transportation equipment; and waste
as scrap material. The railroads also carried a very
high proportion of goods produced in industries
such as furniture and fixtures; fabricated metal
products; and machinery including electrical ma
chinery. (See table 1.)
The changes in the relative position of various
transportation modes are illustrated by the statistics
on constant dollar gross product originated, which
cover the entire output, both passenger and freight
traffic. Gross product originated in the railroads de
clined between 1947 and 1961, but the figure has
risen since 1961. (see table 2.) Gross product origi
nated in the other transportation sectors has also
risen steadily since 1961, growing at a faster rate in
air transportation and m otor freight than in the rail
road industry.
Since 1947, transportation as a whole has de
clined in relative importance in the economy with
railroads furnishing a substantial part of the decline.
F or example, in 1947 railroads accounted for 3.5
percent of th e ' all-industry total but, by 1969 had
decreased to 1.6 percent. Gross product originated
in all industries (in constant dollar term s) grew by
135 percent in the 1947-69 period, compared with
a 64 percent increase in all transportation industries.
Almost all of the growth in transportation was ac
counted for by a 284 percent increase in motor
freight and a 1,500 percent growth in air transporta
tion. During the early years of the period
(1 9 4 7 -6 1 ), gross product originated in local and
highway passenger transportation (not shown sepa
rately) decreased sharply as private automobile traf
fic rose after World W ar II. This decline in local
Table 1. Ton-miles of shipments—means of transport and commodity, 1967
Percent distribution by means of transport
Transport
commodity
code 1
20
21
22
23
24
25
26
28
29
30
31
32
33
34
35
36
37
38
39
Commodity
Food and kindred products.............................................
Tobacco products...............................................................
Basic textiles........................................................................
Apparel, including knit apparel, and other finished
textile products................................................................
Lumber and wood products, except furniture
Furniture and fixtures.......................................................
Pulp, paper, and allied products...................................
Chemical and allied products.........................................
Petroleum and coal products..........................................
Rubber and miscellaneous plastic products...............
Leather and leather products..........................................
Stone, clay, and glass products......................................
Primary metal products....................................................
Fabricated metal products...............................................
Machinery, except electrical............................................
Electrical machinery and equipm ent............................
Transportation equipm ent...............................................
Instruments, photographic goods, optical goods,
watches, and clocks.......................................................
Miscellaneous products of m anufacturing..................
Ton-miles of
shipments
(millions)
All means
of transport
Rail
Motor
carrier
Private
truck
Air
Water
Other
Unknown
91,854
L 146
5,925
100.0
100.0
100.0
66.1
64.0
15.8
21.1
25.1
64.6
9 .9
.4
16.6
0.1
.2
2 .6
9 .8
2 .0
0.1
.2
.8
0 .2
.4
2,331
45,145
3; 860
36,333
62;117
288,356
5; 754
694
25,525
51'756
14,262
12,341
8,781
16,350
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
103.0
100.0
100.0
100.0
100.0
12.2
77.9
33.4
77.4
60.2
3 .4
34.2
8.7
50.8
60.2
39.7
39.1
4 2 .8
72.6
67.7
5 .4
48.9
15.2
20.3
1 .8
56.8
6 3.9
31.9
2 5.5
4 6.0
48.2
46.0
21.9
8 .3
6 .8
13.4
3 .9
4 .5
.7
6 .0
18.2
9 .8
3 .9
10.1
8 .3
6 .5
3.9
1.9
9 .3
.6
.4
.2
.1
.1
.2
.2
.1
.5
.9
1.4
.4
.5
9 .8
3 .4
2 .9
14.6
94.1
.4
.7
7 .3
10.2
2 .9
.9
.8
.8
1.8
7 .8
.1
.1
.7
2 .5
2 .4
.3
.3
.1
.1
.1
.1
.1
.1
.1
665
1,629
100.0
100.0
30.5
2 8.6
57.0
5 4.9
2 .7
8 .3
4 .0
.4
.4
1.2
5 .0
5 .7
.4
.9
‘ The basis for classifying commodities in the Census of Transportation.
SOURCE: 1967 Census of T ra n s p o rta tio n , “ Commodity Transportation Survey,”
U.S. Department of Commerce, Bureau of the Census, Pages 30-53.
.1
.1
.5
.6
7
THE CHANGING RAILROAD INDUSTRY
Table 2. Gross product originated in transportation, by mode, selected years, 1947-69
[billions of 1958 dollars]
Year
All
industries,
total
(GNP)
All
transportation,
total
Railroads,
SIC 40
Air
transportation,
SIC 45
Motor freight
and
warehousing,
SIC 42
All other
transportation1
6 .9
309.9
21.1
10.7
0 .4
3.1
452.5
2 2.5
9 .5
1.5
6 .4
5.1
1961
1962
1963
1964
1965.....................................................................................................................
497.2
529.8
551.0
581.1
617.8
2 2.5
23.8
25.2
2 6.2
2 8.6
8 .7
9 .2
9 .7
10.2
11.0
1.9
2.1
2 .4
2 .7
3 .3
7 .5
8 .0
8 .5
8 .6
9 .7
4 .4
4 .5
4 .6
4 .7
4 .6
1966
1967
1968
1969.....................................................................................................................
658.1
675.2
707.2
727.1
3 1.2
3 1.4
3 3.3
3 4.5
11.7
11.2
11.3
11.3
4 .2
5.1
5 .8
6 .4
10.5
10.4
11.1
11.9
4 .9
4 .8
5 .0
4 .9
6 .5
5 .9
-3 .2
1.4
1947.....................................................................................................................
Average Annual Percent Change
1 947-61..............................................................................................................
196 1 -69 ..............................................................................................................
3 .4
4 .9
i Standard Industrial Classifications 41 (local and highway passenger), 44 (Water
-1 .5
3 .3
0 .5
5 .5
11.8
16.4
transportation), 46 (P ipeline), and 47 (Transportation services).
SOURCE: U.S. Departm ent of Commerce.
and highway passenger transportation is reflected in
a decrease in gross product originated in the cate
gory “all other transportation.”
In the 1961-69 period, growth occurred in all
transportation categories shown. In recent years, the
railroads have been making a concerted effort to re
tain existing traffic and to generate new traffic, thus
reversing the decline that had occurred earlier.
However, the growth of railroads has not been
keeping pace with that of other modes of transpor
tation. Total transportation output grew by 53 per
cent during the 1961-69 period while railroad
growth was only two-thirds as great, m otor freight
was approximately equal to this total growth, and
air transport growth about 5 times as fast. A m ajor
reason for the slower rate of growth in railroads was
the continuous decline in rail passenger service,
offsetting some of the gains in freight carriage. The
following two sections give more details of actual
volume of traffic moved by various modes, as esti
mated by the Interstate Commerce Commission.
Freight Traffic. In 1939, the first year for which an
estimate of traffic carried by various transport
modes was published by the ICC, railroads ac
counted for over 64 percent of total freight traffic,
although motor vehicles already carried over 9 per
cent. The railroads’ position was then enhanced, rel
ative to both m otor transportation and water trans
portation, during World War II, because of
wartime induced shortages (see table 3 ). Beginning
in 1947, the railroads’ share of freight traffic de
clined steadily, stabilizing at 43 percent in 1961,
and declining only slightly since then. During the
same time, trucking increased its share from 9.6
percent to 21.3 percent, while water transportation
and pipelines also increased their relative shares—
the latter doubling its percentage of the traffic.
Passenger Traffic. In 1944, an all-time high point in
rail carriage of passengers, the railroads accounted
Table 3. Percent distribution of total estimated intercity
ton-miles of freight, by mode, selected years, 1939-69
Percentage distribution1
Year
Total
ton-miles
(billions)
R a il2
Motor
vehicle
Inland
waterway
and
great lakes
Pipeline
1939...................
574.8
64.4
9 .2
16.7
9 .7
1947...................
1 ,0 6 0 .8
66.6
9 .6
13.8
9 .9
1957...................
1 ,3 5 4.0
4 7.6
18.8
17.1
16.5
1961...................
1962...................
1963...................
1964...................
1965...................
1 ,3 1 0.3
1,3 7 1.5
1,4 5 4.4
1 ,5 4 2.8
1 ,6 3 8.6
4 3.5
4 3.8
43.3
43.2
4 3.3
2 2.6
2 2.6
23.1
23.1
21.9
16.0
16.3
16.1
16.2
16.0
17.8
17.3
17.4
17.4
18.7
1966...................
1967...................
1968...................
19691 ................
1 ,7 4 7.4
1,7 5 7.3
1,8 3 4.3
1 ,8 9 4.2
4 3.0
41.6
41.3
41.2
2 1.8
22.1
2 1.6
21.3
16.1
15.6
15.7
15.6
19.1
20.5
21.3
21.7
1 Air cargo excluded as amount carried is only 0.2 percent in 1969.
2 Because of data limitations, rail figures for years 1939-57 include nonrevenue tonmiles; thereafter coverage is for revenue ton-miles only. In 1959, the figure including
nonrevenue ton-miles was 599.3 billion ton-miles compared with 582.5 billion exclud
ing nonrevenue ton-miles.
3 Preliminary.
SOURCE: Interstate Commerce Commission.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
8
for 75 percent of the intercity total carried by public
transportation, and the airlines only about 2 per
cent. In the years since World W ar II, the airlines
and the railroads have reversed their relative posi
tions in passenger miles carried by public carriers.
By 1969, the airlines accounted for over 70 percent
of all passenger miles carried by public carriers, the
railroads less than 8 percent. (See table 4.)
Private automobiles continue to carry the major
share of total intercity passenger miles. In 1947,
they carried 273 billion passenger miles or 78 per
cent of the total; by 1969, they carried over 3 times
the 1947 level, or about 86 percent of all intercity
travel.
Changing structure of the industry
One of the significant changes in the industry has
been the reorganization of railroads into fewer but
larger companies through mergers. The current
merger movement in the railroad industry dates
from January 1955, when the Interstate Commerce
Commission was petitioned to approve the merger
of two southern railroads, effective August 1957.
This merger followed by 10 years (1947) the last
m ajor merger approved by the ICC. On the other
hand, it was the first of 17 significant mergers in
volving class I railroads, effected between 1957 and
1969.
Altogether, 31 companies were involved in the 17
mergers, some having been affected more than once.
By early 1969, these 31 companies had been re
duced to 11. F or the industry as a whole, merger,
Table 4.
purchase, and control of other railroads had reduced
the total number of operating railroads from 415 in
1957 to 370 in 1967.3 Accompanying this general
decline was a decrease in the number of railroads
that operated over 1,000 miles of road— from 40 in
1957 to 34 at the end of 1967. However, the per
centage of miles of road operated by these compa
nies increased from 85.2 percent of the total to 86.4
percent over the same period. As of July 1, 1969,
there were 13 companies seeking to merge with
other railroads.
Marketing and managerial changes
Im portant changes in railroad management in the
1960’s have turned the absolute decline in rail traf
fic into a gain and stabilized the railroads’ competi
tive position with respect to total intercity freight
traffic. First, there has been a reorientation from a
relatively passive approach to marketing of services
to an aggressive search for new business. Second,
there has been an increased emphasis on the recruit
ment of more broadly trained personnel— frequently
from colleges— contrasted with the traditional rail
road progression “up through the ranks.”
Traditionally, the railroads have focussed on the
carriage of commodities for which they are uniquely
suited— notably, high density, bulky cargoes with
low unit values. (See table 5.) As a result they al
lowed high unit value cargo to go to the trucking in-
3 Includes classes I, II, and circular and unofficial rail
road companies.
Distribution of intercity passenger traffic in the United States by mode, selected years, 1949-69
[Billions of passenger-miles]
Year
Total
intercity
travel
Public carriers
Private
automobile
Total i
Railroads and
electric railways
Buses
Air
carriers
1944.....................................................................................................................
Percentage....................................................................................................
280.3
100.0
151.3
5 4.0
131.0
100.0
9 7.7
74.7
2 6.9
2 0.5
2 .2
1.7
1947.....................................................................................................................
Percentage....................................................................................................
351.6
100.0
2 73.0
7 7.6
7 8.6
100.0
4 6 .8
5 9 .5
2 3.9
3 0.4
6.1
7 .8
1957.....................................................................................................................
Percentage ....................................................................................................
748.3
100.0
670.5
89.6
7 7 .8
100.0
2 6.3
3 3 .8
2 1.5
2 7.6
28.1
36.1
1967......................................................................................................................
Percentage....................................................................................................
1 ,0 2 0.6
100.0
889.8
87.2
130.8
100.0
15.3
11.7
24.9
19.0
8 7.2
66.7
1969 2 .........................................................................................
Percentage....................................................................................................
1,1 3 0.0
100.0
977.0
86.4
153.0
100.0
12.0
7 .8
26.0
17.0
111.0
1 Addition of the separate sectors in the public carrier section add to less than the
amount shown in the “total" column due to the omission of passengers carried by
water.
3Preliminary.
7 2.6
SOURCE: Reports of the Interstate Commerce Commission; Civil Aeronautics Board;
and Corps of Engineers, U.S. Army,
9
THE CHANGING RAILROAD INDUSTRY
Table 5. Commodities carried: class I railroads, 1968
Revenue freight originated
(millions)
Percent distribution1
Commodity groups, ranked by tonnage
Carloads
Tons
Carloads
Tons
Total (excluding small packaged fre ig h t)...........................................................................................................
27.6
1 ,4 3 0.4
9 9.8
100.0
C oal................................................................................................................................................................................................
Nonmetallic minerals, excluding fu e l................................................................................................................................
Farm products............................................................................................................................................................................
5 .2
2 .3
2 .3
1.4
2 .8
2.1
1.7
1.6
1.4
1.2
.8
.8
1.2
.5
.5
.3
1.7
379.1
170.7
116.0
111.7
105.2
98.1
9 1.0
87.1
77.3
4 0.8
34.5
28.9
27.3
12.5
10.6
4 .7
35.6
19.0
8 .4
8 .2
5 .2
10.0
7 .7
6 .0
5 .9
5 .0
4 .3
2 .9
2 .4
4 .4
1.6
1.8
26.5
11.9
8.1
7 .8
7 .4
6 .9
6 .4
6.1
5 .4
2 .8
2 .4
2 .0
1.9
.9
.7
.3
2 .5
Food and kindred products...................................................................................................................................................
Lumber and wood products, excluding fu rn itu re ...........................................................................................................
Primary metal products..........................................................................................................................................................
Chemical and allied products...............................................................................................................................................
Pulp, paper and allied products..........................................................................................................................................
Waste and scrap m a te ria l......................................................................................................................................................
Petroleum and coal products...............................................................................................................................................
Transportation equipm ent.....................................................................................................................................................
Fabricated metal products, excluding ordnance, machinery and transportation.................................................
Miscellaneous mixed, excluding forwarder and shipper association tra ffic ..........................................................
Freight forwarder traffic.........................................................................................................................................................
All others .................................................................................................................................................................................
1.0
6 .0
1 Percentages do not add to 100 percent due to rounding.
SOURCE: Interstate Commerce Commission Statement 69100.
dustry by default. In the mid-1950’s, some railroads
set about stemming traffic declines by setting up
marketing offices, which took on a more aggressive
marketing stance. Salesmen with research reports
and cost-benefit analyses actively demonstrated po
tential savings to prospective customers.
Investment and modernization
Capital investment in new plant and equipment in
the railroad industry averaged $1.4 billion a year
over the 1947-69 period; these expenditures ranged
from a low of $800 million in 1961 to a high of
$2.4 billion in 1966. Expenditures in the 1947-57
period av.eraged $1.3 billion, then dropped to an av
erage of $1.1 billion in the 1957-61 period. During
the 1960’s (1 9 6 1 -6 9 ), these expenditures rose to
reach an average of $1.6 billion. Appendix 1-1
shows year-by-year figures for capital investment.
These figures, however, do not include all outlays
for new equipment rented and leased. The Associa
tion of American Railroads (A A R ) estimates that
in 1969 leases and rented equipment added about
$400 to $500 million to class I railroads’ outlays.
Specific examples, of these quasi-capital expendi
tures include the leasing of over 150,000 tank cars,
as well as rental of computers. As of January 1969,
the railroads paid an average monthly rental of $3.5
million for computers.
Table 6, which shows a percentage distribution of
gross capital expenditures by category, is based on
figures reported to the Interstate Commerce Com
mission. It serves to illustrate how, in the recent
past, capital expenditures have been allocated by
class I railroads. Over the 10-year period, 1956-65,
expenditures for new rollingstock— diesel locomo
tives and cars— accounted for about 70 percent of
the $10.7 billion spent; next in importance were ex
penditures for right-of-way, track, and structures
and improvements which accounted for 17 percent
of the cumulative total. The purchase of roadway
machines and the installation of communications
and signaling equipment accounted for another 6
percent of the total. In recent years, the emphasis in
capital expenditures appears to have been shifting
toward these latter two areas.
It has been suggested that expenditures include
provisions both for regular replacement of equip
ment and also for an expansion of capacity to meet
Table 6. Percentage distribution of gross capital expendt
tures of class I railroads, by category, 1956-65
Description
Percent of
total expenditures
1956-65 i
Total ......................................................................................................
100.0
Locomotives2....................................................................................................
Freight and passenger c ars3........................................................................
15.6
54.6
16.9
1.6
4 .4
6 .8
Communications and signalling6................................................................
All others ^ .....................
7.....7.................................
1 Percentages do not add to 100 percent due to rounding.
2 Interstate Commerce Commission (ICC) account numbers 5 1 ,5 2.
3 ICC account numbers 53, 54.
4 ICC account numbers 1-7 , 8 -1 2 ,1 3 -2 4 .
6 ICC account number 37.
6 ICC account numbers 26-27.
7 All other numbers, table 138, part I, tran sp o rt sta tis tic s in th e U nited S tates ICC.
SOURCE: Interstate Commerce Commission.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
10
requirements of future growth of the economy. This
means that railroad capital expenditures should re
main approximately constant relative to all industry
capital expenditures. However, railroad investment
has not kept pace with investment in all other indus
tries, nor in other transportation modes in these rel
ative terms. While other transportation modes have
retained their relative position in the framework of
all industry capital expenditures, railroads have not.
(See appendix 1-1 for absolute and relative figures.)
The anticipated goal for capital expenditures
stated by the Association of American Railroads in
the mid-1960’s— $2 billion per year through 1975—
was far in excess of current experience.4 Moreover,
a 1970 restatement of these capital requirements
puts industry needs at a higher figure— about $3.6
billion per year between 1970 and 1980.5 The dif
ference between industry goals and current experi
ence implies that maintaining or improving the rail
roads’ share of total intercity traffic will be a major
challenge.
This lag in capital investment is a contributing
factor in the average age of capital equipment,
which among railroads tends to be older than in
other industries. A 1966 survey by McGraw-Hill
showed that railroads have 49 percent of their ca
pacity in equipment “over 16 years” old.6 As can
be seen in table 7, which compares the age of capi
tal equipment in 1966 with 1962, “other transporta
tion” has maintained its 1962 distribution of capac
ity by age. By contrast, in the railroad industry the
proportion of capacity more than 16 years old has
increased substantially.
The significant rise in the percent of railroad
equipment found in the “over 16 years” category in
1966 compared with that of 1962 probably stems
from two major causes, in addition to a lagging cap
ital investment program. First, the large amounts of
Table 7. Percentage distribution of age of industrial
capacity, spring 1962 and December 1966
Industry
More than
16 years
11-16
years
6 -1 0
years
0 -5
years
4 Technological Trends in Major American Industries,
AS OF SPRING 1962
Railroads...................................................................
Other transportation and comm unications...
All m anufacturing..................................................
39
19
24
19
15
16
49
19
24
20
23
22
27
19
44
33
AS OF DECEMBER 1966
Railroads...................................................................
Other transportation and communications...
All manufacturing..................................................
SOURCE: McGraw-Hill (Nov. 2 5 ,1 9 6 6 ).
capital equipment purchased between the end of
World W ar II and the Korean conflict entered the
“over 16 years” category in the brief period between
1962 and 1966. Second, it is likely that rather large
amounts of older capital equipment (relevant partic
ularly to the car fleet) were held in use, rather than
retired, during the high demand for railroad service
that characterized the period of the early and mid1960’s. It should be borne in mind, however, that
the proportion of railroad equipment in the “over
16 years” category might go still higher and yet be
within bounds of a “norm al” replacement schedule
because of the extremely long-lived nature of much
railroad equipment (over 25 years).
In the future, the industry’s efforts to modernize
will depend, to a great extent, on the amount of
funds available from different sources. In earlier pe
riods, the railroads financed capital expenditures pri
marily from internally generated funds (retained
earnings, both undistributed profits and capital con
sumption allowances). However, debt financing was
extensively used after World W ar II. A continued
decline in the rate of return on net investment
(original cost of transportation equipment, less de
preciation and amortization plus cash and m ate
rials) from 2.9 percent in the 1957-67 period to
2.5 percent in 1968 and 1969 has made financing
through internal generation of funds increasingly dif
ficult in recent years. Although retained earnings
(internally generated funds) still provide over half
of the money for capital investment, debt financing
has become increasingly im portant. For example,
during the 1957-67 period, debt certificates issued
(bonds and equipment trust certificates) amounted
to 49 percent of the funds reported for capital ex
penditures. Equipment trust financing— a special
debt form wherein the ownership is retained by the
lender until the loan has been repaid in full— is be
coming increasingly im portant and has accounted
for over one-third of the $7.7 billion raised through
debt financing in the 1957-67 period. (See appen
dix 1-2 for year-by-year figures on methods of debt
16
19
13
23
21
18
42
36
U.S. Department of Labor, Bulletin 1474, 1966, pp.
196-97.
5American Railroad Industry: A Prospectus, America’s
Sound Transportation Review Organization, Association of
American Railroads, Washington, D.C., June 1970.
6 “How Modem is American Industry?” McGraw-Hill,
Nov. 25, 1966, table 1. More recent data being compiled
was not available while this report was being prepared.
THE CHANGING RAILROAD INDUSTRY
financing.) Stock issued during the 1957-67 period
amounted to only about 0.5 percent of the reported
capital expenditures.
11
Table 8. Research and development related to railroad
industry', selected years 1960-66
Year
Industry
Suppliers
Companies
AAR
$6,000,000
5,400,000 (77)
42,000,000 (22)
48,000,000 (22)
$1,000,000
N.A.
N.A.
1,272,800
Research and development
The need for greater efficiency in the face of rigo
rous intermodal competition has led to increased
emphasis on research and development expenditures
in the railroad and in its supply industries. Research
and development (R&D) in this industry is a con
tinuous process which has led to numerous changes
in equipment, methods, and materials, many of
which are discussed in chapter II.
Surveys on research and development expendi
tures carried out by R a ilw a y A g e in 1960 and 1966,
provide some information on the growth of such ex
penditures by railroad companies. The relationship
between these company expenditures and those of
the Association of American Railroads for R&D can
be seen in table 8.
This relationship exists because company research
efforts are generally geared to the problems of indi
vidual companies, A A R research to the entire indus
try’s needs. The Association has traditionally
worked on problems that relate to industry-wide
technical standards and equipment certification. In
1969, the President of the A AR pledged a change
in the Association’s research effort leading to both a
separation of the testing and research programs, and
also increases in the amount of money to be spent
in both categories.
Research performed by suppliers complements the
individual companies and the A A R ’s. F or example,
a company may define a particularly vexing problem
to a supplier, asking him to develop and build some
type of special equipment, within specified costs.
According to the R a ilw a y A g e survey, 32 suppliers
spent almost $33 million in 1965 for R & D and the
anticipated 1966 figure was close to $30 million.
1960.................................
1961.................................
1965.................................
1966.................................
$35,000,000
15,000,000
32,900,000
29,800,000
(est.)
(132)
(32)
(32)
1 Parenthetical numbers indicate companies covered by survey.
SOURCE: R ailw ay Age, Apr. 18, 1966.
The U.S. Departm ent of Transportation (D O T )
now has the m ajor responsibility for governmentsponsored research in the field of railroad transpor
tation. Formerly, this activity was divided with the
Departm ent of Housing and Urban Development
(for mass transit). One m ajor DOT demonstration
project is now taking place in the northeast corridor
to test customer response to fast, comfortable rail
transportation between New York City and Wash
ington, D.C. During the initial operation minimum
time for non-stop “M etroliner” service was 2 hours
and 30 minutes. During the first 6 months of opera
tion— through mid-July 1969— all rail passenger
service in the corridor increased 11 percent. The
number of passengers traveling the full distance be
tween the 2 cities had risen by 72 percent, mainly
“M etroliner” passengers. The new trains were filled
to 76 percent capacity, a level 50 percent higher
than that for conventional trains; passenger traffic
on regular trains has also increased slightly. Compu
terized ticket sales were instituted in 1969 to de
crease the need to wait in line for ticket purchase.
Another major Federally sponsored demonstra
tion project is the New York-Boston “Turbotrain,”
put into operation in April 1969. The three-car
trainset, making one round trip between the two cit
ies, and stopping at four intervening locations, is
scheduled to make the trip each way in 3 hours and
39 minutes. Thus far, the service provided has been
limited.
Chapter II.
Technological Change in the 1960’s and 1970’s
This chapter presents information on the major
technological and procedural changes that have
been taking place in almost all operating depart
ments of the railroads in the past decade. These in
novations include (1 ) equipment subjected to a
major change, (2 ) a completely new piece of equip
ment, or (3 ) a series of minor changes in a particu
lar operation. The common denominator of these
items is the significant implication -for the industry’s
labor force. Effects of these changes on employment
and occupations are discussed in detail later in
chapters IV and V.
Background
Technological changes in the railroad industry
have been introduced in response to pressure from
competition by other modes of transportation and
from rising wage rates, fuel, and material prices.
Changes have been a part of overall efforts to cut
costs and to provide better services. While many
changes have been accepted, the process has been
gradual, extending over a long period of time. The
factors preventing the immediate acceptance of the
diesel locomotive illustrate well the economic con
straints slowing many technological advances. For
example, when the diesel locomotive was intro
duced, it could not be immediately adopted because
many of the steam locomotives still had years of
useful life, while a substantial investment was re
quired to dieselize completely. In addition, rail traf
fic’s decline in the postwar period reduced the num
ber of locomotives needed. Also, capacity to
produce the new locomotives was limited. In addi
tion, some railroad managements, especially of lines
hauling extensive quantities of coal, were not easily
convinced that the diesel was advantageous. As a
result, the changeover from steam to diesel locomo
tives took about 20 years to accomplish; by 1958,
virtually every locomotive was diesel-powered. The
diffusion of Centralized Traffic Control (C T C ) has,
likewise, taken place over decades and is still not
complete.7
A brief description, with present and estimated
status in the last half of the 1970’s, of 10 types of
technological changes is presented in table 9, fol
lowed by a detailed discussion of those changes.
Motive power developments
The num ber of locomotives in use has been de
clining, largely because the newer ones are capable
of delivering more tractive effort than the ones they
replaced. In 1967 there were 27,687 locomotives,
99 percent diesels. Approximately 25 percent of
these were “second generation,” introduced in 1961,
and represented a much improved locomotive com
pared to the first diesel used throughout the indus
try. Ten years earlier, there had been 30,248 loco
motives in service 90 percent diesel-electrics and the
remainder steam locomotives. Chart 1, shows the
decline in the num ber'of steam locomotives and the
growth of diesels at 5-year intervals for the period
1947-67.
The introduction of the second-generation diesel
in 1961 reduced unit maintenance requirements.
Second-generation diesels required 57 percent fewer
unit man-hours for annual maintenance and inspec
tion than did earlier diesels; first generation diesels
had also, previously, reduced unit m an-hour require
ments substantially below the steam locomotives
(see chapter V ). Among the im portant improve
ments included in the second-generation units are
sealed, pressurized engine compartments that ex
clude dirt and moisture; solid state components in
electrical systems to improve reliability; alternating
current traction generators to replace more complex
7
For an earlier discussion of diffusion of innovations,
see “Regularization of Capital Investment in Railroads,” by
K.T. Healy in R egularization o f Business In vestm en t —A
Conference, National Bureau of Economic Research, Prince
ton University Press, 1954, pp. 162-184. Also see The
T ransportation Industries, 1889-1946, Harold Barger, Na
tional Bureau of Economic Research, New York, 1951, pp.
100-111 and “Productivity, Hours and Compensation of
Railroad Labor,” by Witt Bowden, M on th ly L abor R eview ,
December 1933, pp. 1275-1288 for a discussion of techno
logical improvements between 1916 and 1932.
13
14
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
Table 9.
Technological change in railroads, 1957-67 and outlook, 1975-80
Description and
impact
1957 status
1967 status
Outlook
Motive Power
Developments
M ore powerful units;
solid state electronics
improve electrical sys
tems; higher tractive
power per unit; greater
overall reliability re
duces maintenance.
Class I locomo
tives totaled
30,248; 90 percent
diesel.
Class I locomo
tives totaled
27,687; 99 percent
diesel. Twentyfive percent were
second generation
models.
Class I locomo
tives may total
about 26,000
diesels; about
two-thirds ex
pected to be sec
ond generation
models by 1975.
Freight Car
Improvement
Special cars developed
for commodity groups;
better bearings; higher
capacity with reduced
car weight to capacity
ratio. Design and m a
terial improvements
reduce loading and
maintenance require
ments.
Total fleet con
tained 2.1 million
cars of which 36
percent were gen
eral box cars. 13.5
percent of fleet
privately owned.
Total fleet con
tained 1.8 million
cars of which 32
percent were gen
eral boxcars.
Nonrail owner
ship 17 percent
of total.
Total fleet require
ments of 1.7 mil
lion cars in 1975.
Private ownership
expected to in
crease with contin
uing emphasis on
expensive, special
purpose cars.
Shippers’ pressure
for cars, rather
than capacity, may
slow increase in
average car capac
ity.
Facility Relocation
and Improve
ments
Repair station consoli
dation, including spot
shop development,
accompanied dieselization, resulting in greater
efficiency. Car and loco
motive washing and in
terior cleaning mechan
ized. Bad order car
ratio reduced.
Concept being
introduced.
Widespread use.
Further consolida
tion and use of
spot shops ex
pected for both
locomotives and
cars.
Piggyback and
U nit Trains
Trains comprised of
trailers or containers of
general merchandise
loaded on flatcars move
on expedited schedules.
U nit trains carry a
single bulk commodity
between two terminals.
They are a vital link in
production processes
Piggyback trains
carried 250,000
carloads. N o sig
nificant use of
unit trains.
Piggyback in
creased to over 5
times 1957 levels.
Widespread use of
unit trains for
many commodi
ties.
Continued growth
of piggyback, but
at a decreased rate.
1 ^ - 2 million car
loading expected
in 1975. Greater
use of unit trains
likely.
Types of
innovation
TECHNOLOGICAL CHANGE IN THE 1^60’s AND 1970’s
Table 9.
15
Technological change in railroads, 1957-67 and outlook, 1975-80— Continued
Description and
impact
Types of
innovation
'
1957 status
1967 status
Outlook
and their movement is
on a strict time sched
ule.
Automatic Classi
fication Yards
Large yards in which
cars are sorted and
switched by destina
tions have digital and
analog computers to
control car speeds and
to aid in switching.
Small yards equipped
with automatic features
now feasible. Increased
car utilization, custo
mer service and m an
power savings result.
About 20 major
yards in service.
More than 50
m ajor classifica
tion yards in
operation. Three
small yards used
automatic equip
ment.
About 12 more
m ajor classifica
tion yards may be
equipped with
“ automatic” fea
tures by 1975.
Some additional
small yards by
1975.
Computers
Both digital and analog
computers in use. Com
puters have provided
information processing
and switching capacity
that permits manage
m ent better control of
operations.
Limited numbers
of analogs in use
in classification
yards. Digital
computers, intro
duced in 1955,
scarce.
Widespread use of
analog computers.
In January 1967
there were 192
digital computers
installed.
The sharp increase
to 252 digital
computers on Jan
ary 1, 1969 sup
ports expectation
that all Class I
roads will be using
computers by
1975.
Centralized Traffic
Control (CTC)
Control of train move
ment over 50-100 mile
or more stretches of
track from a central
location. A model of
the track is operated by
one man who pushes
buttons or switches to
keep trains moving in
accordance with their
priorities. Capacity of
track is expanded and
manpower savings re
sult.
32.000 miles of
track were under
CTC, out of
269.000 miles of
main track oper
ated.
49.000 miles of
track were under
CTC, out of
254.000 miles of
main track oper
ated.
Extension of
am ount of track
under control of a
single center ex
pected. This may
take form of re
gional, multiroad
complex or cover
age of greater per
centage of a single
road’s track.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
16
Table 9.
Technological change in railroads, 1957-67 and outlook, 1975-80— Continued
Types of
innovation
Miscellaneous
Signaling and
Communication
Description and
impact
1957 status
1967 status
Outlook
These developments en
hance equipment uti
lization, promote safety
and decrease m ainte
nance costs.
(a) Detectors
Detectors—mechanical
or infra-red devices—locate and report dan
gerous conditions in
equipment along the
right of way. Several
types developed for
different purposes.
First introduced
in mid-1950’s.
Over 8,600 detec
tors were in place.
Detectors will in
crease. Rising train
speed increases
importance of de
tecting dangerous
conditions early.
(b) Microwave
High capacity radio
carrier wave currently
being used by railroads
to supplement or sup
plant wire message
carriers.
Federal Com m u
nications Commis
sion authorized
use in 1957.
22,000 route miles
in 1966.
About 50,000 route
miles expected.
Rapid growth tied
to development of
total information
systems.
(c) Automatic
Car Iden
tification
(ACI)
Reflecting labels picked
up by transmitter, de
coded and sent to cen
tral operations. Equip
ment location and
progress easily recorded.
Non-existent.
Under develop
ment.
Standard version
adopted 1969. By
1970, all cars in
interchange service
to be labeled for
ACI, but all roads
will not have oper
ating systems to
use. By 1975, uni
versal use expected.
Single and multi-pur
pose machines aid in
track laying, tie place
ment and ballast sur
facing. Continuous rail
that replaces 39' sec
tions and concrete ties
are in use. Off-track
machines combined
with use of radio in
crease labor utilization.
Track defects detected
by electronically
Single purpose
machines in
limited use. Other
innovations not
yet in use.
Widespread use of
single-purpose
machines. Con
crete ties in
limited use. Seven
percent of m ain
line trackage in
continuous rail.
By 1975, use of
combination m a
chines and con
crete ties is likely
to expand; con
tinuous rail will
be used exten
sively.
M aintenance of
Way Innovations
TECHNOLOGICAL CHANGE IN THE 19 60’s AND 1970’s
Table 9.
17
Technological change in railroads, 1957-67 and outlook, 1975-80—Continued
Types of
innovation
Description and
impact
1957 status
1967 status
Outlook
N ortheast Corri
dor Experiment
to use Metroliners
being formulated.
Successful use of
N ortheast Corri
dor concept may
be extended to
other areas. Other
long-haul service
may vanish.
equipped cars. M /W
scheduling aided by
computers to obtain
maximum equipment
and manpower use.
Innovations in
Passenger Service
Air conditioned, elec
trically driven cars in
Northeast Corridor Ex
periment. Autom at food
service on some trains.
Computerized ticketing.
A /C cars in use.
direct-current units, and improved cooling systems.
These new second-generation diesel locomotives
range in horsepower from 2,500-6,000, compared
with 1,200-1,500 for earlier diesels. Their tractive
power— effective pulling force delivered to the draw
bar— is also much higher. In 1967, the average die
sel electric unit’s tractive power was 65,178 pounds
compared to 60,479 pounds 10 years earlier. This
increased pulling power has resulted in a 12 percent
increase in gross ton-miles hauled per engine over
the 1957-67 period.
Six axle-drive units have been a contributing fac
tor to this increased tractive effort per locomotive
and may promote still further the trend to high horse
power, single unit engines of over 4,000 horse
power. Six-axle drive units have rapidly gained pop
ularity because they increase ability to utilize high
horsepower. First available in 1963, the six-axle
drive accounted for 60 percent of all units delivered
by 1966. The units are especially good for railroads
operating in steep grade territory.
Another motive power development becoming
more widespread is the use of a “slave” unit, placed
unmanned in the middle of the train. Because of the
trend toward higher horsepower units, starting trains
with only one unit can be hazardous. Too much
power applied rapidly can cause breakage of the
drawbar— the connecting link between the train and
the engine units. Dispersing these slave units
throughout the train reduces the amount of inertia
to be overcome by each locomotive unit, reducing
the drawbar breakage problem and increasing maxi
mum feasible length of trains.
Still another motive power development is the gas
turbine locomotive, introduced in the early 1960’s,
and being used on a limited basis in the West. They
are best used over a long haul with a limited num
ber of stops. Thus, their use is precluded on many
railroads which operate over shorter distances, so
there is little prospect for wider diffusion by 1975.
In 1966, the industry announced that it was em
barking on an “Evenkeel” repowering program
keyed to the purchase of 1,500 locomotive units
each year for the 1966-75 period. While locomotive
purchases totaled 1,419 in 1966, the 1966-70 aver
age was only 1,122. Carrying out of this projected
purchase of 1,500 units per year through 1975 ap
pears unlikely in view of the limited amount of capi
tal available and the rising unit cost. Through 1975,
an annual average of 1,200 locomotives is likely to
be added to the fleet. This means that, after ac
counting for retirements, the total fleet may number
about 26,000— down from nearly 28,000 in 1967.
The proportionate share of second-generation diesels
in the fleet may reach about 63 percent, up from 25
percent in 1967.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
18
Freight car improvements
The percent of freight cars owned by railroad
companies fell during the decade 1957-67. There
were over 1.8 million freight cars in operation in
1967, down from 2.1 million in 1957. Of this num
ber, 13.5 percent of all cars were owned by other
than railroad companies in 1957, in contrast with
about 17 percent by 1967. However, the increase in
average car capacity has tended to offset much of
the decline in the number of freight cars; in fact, the
total capacity of all cars, including those privately
owned, increased between 1957 and 1967.
The composition of the car fleet has shifted from
general purpose toward special-purpose cars and the
average capacity has increased. In 1968, for exam
ple, the average new car purchased had a capacity
of 81 tons compared to an average of only 57 tons
for those being retired. In addition, material and de
sign changes have reduced the weight of the car in
relation to its capacity.
In 1957, box cars had represented 36 percent of
all freight cars but, by 1967, this proportion had
dropped to 32 percent. (See table 10, Specialized
Freight Cars, by M ajor Class, 1957 and 1967.) On
the other hand, the number of specialized cars (box
cars especially fitted for a particular kind or class of
cargo) rose almost IV z times (from 54,000 in 1957
to 139,000 in 1967). Declines occurred among gen
eral-purpose box cars, stock cars, gondolas and
open hopper cars and refrigerator cars.
The number of flat cars in use rose between 1957
and 1967 because of an increase in piggyback traffic
and also in the number of automobiles transported
by rail. Piggyback traffic grew from less than 1 per
cent of carloadings in 1957, to 4.3 percent in 1967,
and 4.8 percent in 1969. According to the Autom o
bile M anufacturer’s Association, auto carriage in
creased from 538,000 cars in 1959 to 5.4 million in
1969. The dramatic growth in number of autos
transported by railroads resulted from the fitting of
flat cars with special car carrying racks. As a result,
one railroad car was able to carry more autos than
one truck, while at the time eliminating the need for
a truck driver.
Another improvement, in materials used, has re-
Chart 1.
Number of Locomotives, by Type and Percent of Total
Thousands
45%
Steam,
Electric
and
Others
55%
10%
2.0%
-4
-----
90%
98%
1957
1962
DieselElectric
1952
Source: See Appendix 11-1.
19
TECHNOLOGICAL CHANGE IN THE 1960’s AND 1970's
Table 10.
Specialized freight cars, by major class, 1957 and 1967
Special features
M ajor car class
Average
capacity per
car (tons) 1
Ownership—
other than
railroad
Cargo
1957
1967
1957
48.9
54.5
0.3% 0 .3 % General service
bulk freight.
Agricultural and
manufactured
products.
1967
1957
Increased capac
ity cars, with
special interior
fittings like stan - ,
chions to support
plywood, cush
ioned underframes, convey
ors, etc.
Conveyor belt
inside to load &
unload cargo.
Much greater
door space than
conventional box
car.
Extra-large box
car.
Contains built-in
dolly.
Multi-purpose
cargo tiedown
attachments,
compatible with
several container
types.
Bulkhead
Cars
Flat car with
“walls” on the
ends.
Auto Rack
Cars
Special drive-on
racks.
93,538
(4.6)
143,335
(7.9)
Unitized lumber
& plywood;
canned goods,
pipe and rolled
floor coverings.
Flat
578,426
(31.7% )
Designed for
tobacco.
“ Hello
Dolly”
Box Car
747,838
(36.4% )
Lumber, bulky
products.
“ Big Boy”
Boxcar
1967
Potatoes, apples,
other produce
All-door Box
Car
II.
Box
Conveyor
Produce
Cars
I.
Total cars and
percentage of
fleet
52.7
61.6
2.0
28.6
Piggyback con
tainers, autos,
lumber.
Lumber, ply
wood, gypsum.
(2
)
Assembled auto
mobiles, 15 per
car.
(2
)
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
20
Table 10.
Specialized freight cars, by major class, 1957 and 1967— Continued
M ajor car class
Special features
Average
capacity per
car (tons) 1
1957
Piggyback
Cars
III.
Gondola and
Hopper
1957
Cargo
1967 .
1957
1967
36,415
(1.8)
17,040
(0.9)
39.7
1.9
2.0
Live animals.
60.4
71.3
1.0
4.0
Coal, grain, other
bulk solids.
884,563
(43.1)
786,664
(43.2)
(3
)
Larger cars with
commodity re
lated variations.
40.3
(3
)
Commodities like
salt, grain, coal.
(4
)
(4)
Covered
Hoppers
“ Big John”
Car
4,000-cubic-foot
aluminum cov
ered hopper.
Grain
Pneumatic
unloading
hopper
Eliminates center
sill for more
usable space.
Dry, flowable
material, such as
flour, malt,
chemicals, plastic
pellets.
H ot Steel
Car
V.
Total cars and
percentage of
fleet
Trucks and con
tainers o f gen
eral freight.
New “ all-pur
pose” cars hold
both trailers and
containers.
Stock
IV.
1967
Ownership—
other than
railroad
H ot steel slabs.
Tank
49.7
Cryogenic
Car
PressureFlow
“ Hopper”
55.3 96.1
97.2
Petroleum, chem 166,452
icals, foods, fertil (8.1)
izers, other dry bulk
or liquid ladings.
Super-cold lad
ings ( —350°F.
and below).
Liquefied gases,
etc.
Pneumatic pres
sure-unloading.
Dry-bulk ladings
like cement.
175,117
(9.6)
TECHNOLOGICAL CHANGE IN THE 1960's AND 1970’s
Table 10.
21
Specialized freight cars, by major class, 1957 and 1967—^Continued
Special features
M ajor car class
Average
Ownership—
capacity per
other than
car (tons) 1
railroad
1957
1967
1957
Cargo
1967
1957
Wine car
Holds 2Y 2 times
wine of earlier
cars (20,000 gal.).
Insulated, with
up to 3 separate
compartments.
Thermos style.
Urethane in
sulated. M ain
tains temperature
without mechaniical cooling.
120,998
(5.9)
117,274
(5.4)
Fruit juices,
liquid sugars &
fats, adhesives
and chemicals.
Refrigerator
39.5
Mechanical
“ reefers”
VII.
1967
Wine
“ Sandwich”
Tank Car
VI.
Total care and
percentage of
fleet
Opens like clam
shell to receive
cargo.
56.0
M eat and other
foods stored at
35°F. or some
what above.
Uses m otor for
cooling instead
of ice.
Other, eg.
Coil Car
61.3 83.3
(5
)
69.9
68.5 40.5
1 Average capacity available for class I only.
2 Accounted for over }/& of all flat cars in 1967. These cars are
virtually all privately owned.
3 Ownership by other than railroads increased from 9 percent
of the category in 1957 to 19 percent in 1967.
suited in a steady rise in the net-to-tare ratio—
weight of the transported product relative to empty
car weight. New materials, notably steel alloys and
aluminum, and new interior coverings and fittings,
are now being used in car construction. Thus, car
material and design changes contribute to an in
crease in the amount of freight that can be hauled
33.1
Various special
cargoes, e.g., six
32,000-lb. coils
of thin steel.
4,507
(0.2)
4,513
(0.2)
4 60,360 in 1957 and 147,412 in 1967.
5 About 16 percent o f refrigerated cars in 1967.
SOURCE: Interstate Commerce Commission, Association of
American Railroads, American Railway Car Institute.
by a given amount of locomotive power. Further
more, because these new materials are stronger and
easily cleaned, maintenance requirements are re
duced. Many new covered hopper cars are plastic
lined to allow easy, thorough cleaning that facilitates
their interchangeable use between hauling of food
and other commodities. Interior fitting changes in-
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
22
elude the use of nailable steel floors in place of
wooden floors and receptacles in car walls to hold
the telescoping rods which reduce in-transit cargo
shifts. Hydraulic cushioning devices have also been
introduced for the purpose of reducing claims for
loss and damage.
One of the most dramatic improvements in the
operation of freight cars has resulted from changes
in journal (axle) lubrication procedures and intro
duction of roller bearings. Before 1957, car wheels
and the journals they revolved upon were lubricated
by placing rags or “loose waste” in the journal box,
to prevent the oil from splashing out and to keep it
against the journal. This loose waste had frequently
tangled around the axle, however, and caused the
very “hotboxes” it was supposed to prevent. Subse
quently, journal pads were developed to supersede
this use of loose waste. These pads required replace
ment at 30-month intervals and were more effective
in retention of oil or grease than the loose waste.
The Association of American Railroads ruled that
after August 1, 1957, all new cars purchased must
have either journal pads— used with friction bear
ings— or roller bearings; after January 1, 1961, all
cars used in interchange had to have one or the
other. According to the Association, about 4 percent
of all cars were equipped with roller bearings in
1960, over 20 percent by 1966. By 1975, taking
into consideration anticipated car purchases, about
half the car fleet should be equipped with roller
bearings.
The hotboxes that once resulted from improper
axle lubrication were a m ajor cause for car setouts
— cars set off on sidings for later repair. Chart 2,
Car Setouts Per Million-Car-Miles, 1955-68, dra
matically shows how the use of journal pads and
roller bearings have reduced lost train time. From
the 1957 peak of 5.5 car setouts per-million-carmiles, a decline of almost 90 percent had occurred
by 1968. The net result of the reduction in time
spent with car setouts for repair has been to in
crease car utilization.
The diffusion of the innovations relative to freight
cars (as described above) is directly related to an
ticipated new car purchases. The American Railway
Car Institute (A R C I)— the major spokesman and
data source for car builders— has made estimates of
annual new car and total fleet requirements between
Chart 2.
Freight Car Set-O uts Per M illion Car-M iles, 1955-70
TECHNOLOGICAL CHANGE IN THE 19 60’s AND 1970's
23
1967 and 1975. Based on retirement curves, utiliza
tion trends, and demand estimates of various com
modity groups, the ARCI foresees retirements aver
aging 71,000 cars for the period January 1, 1967
through January 1, 1976. Total fleet requirements in
1975, estimated at 1.7 million cars, less the retire
ments, yields an average annual purchase require
ment ranging from 62,000 to 85,000 cars, depend
ing on railroad m arket share. Average purchases for
1967-70 have been about 69,000 cars annually, or
about the level expected by ARCI.
pacity hydraulic jacks and electric hoists. Hose
reels, acetylene, and oil are similarly placed, as are
revolving part bins that eliminate fumbling for a
part or the need to make a trip away from the work
station. Heating of new facilities is accomplished
with more efficient boilers, having better controls.
C ar cleaning is done in these locations by using au
tomatic “car wash” techniques. These procedures
cut cleaning time by as much as one-half. Large
vacuum units are used to clean car interiors.
While the cost of these new spot shop facilities is
high, railroads adopting them expect the savings re
alized to result in a quick payback. F or example,
one railroad centralized and modernized one of its
shop facilities in 1964. Its fully automated wheel
shop, which replaced 10 smaller shops, was ex
pected to be fully amortized in 1969. Also, one
equipment company reports that spot repair facili
ties “generally increase labor efficiency 100
percent.” 8
The superiority of spot shops use over older re
pair methods is widely recognized. Although they
are presently widespread, some further adoption of
this method can be expected. Further improvements
within these facilities, such as the automatic wheel
shops mentioned above, are also expected by 1975.
Shop facilities: relocation and improvements
Repair work of rollingstock, both locomotives
and cars, has been shifted from locations scattered
along the right-of-way to central locations called
“spot shops,” which use production-line techniques.
The locomotive or car is now brought to a central
facility which is subdivided into various work sta
tions where specialized equipment is available for
any type of repair or inspection required. Thus, time
spent in carrying tools to the equipment to be re
paired has been eliminated. When disassembly of lo
comotive or car components is required, the repair
of parts is closely coordinated so that equipment is
not held in bad order condition because of lack of
some minor part. Other changes taking place within
spot shops include the strategic location of high-ca
8 Car and Locomotive Cyclopedia, 1966, Simmons-Boardman, 1966, p. 1182.
View from the “ pit,” as diesel-electric locomotive undergoes periodic maintenance and overhaul check-up.
24
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
Piggyback traffic and unit trains
Piggyback traffic, or trailer-on-flat-car (T O F C ),
and more recently container-on-flat-car (C O F C ),
services are among the most significant newer trans
portation developments. Piggybacking is simply the
loading of a highway trailer onto a flat car by means
of a ramp or mechanical loader. COFC service is
less widespread because a mechanical loader is al
ways required; however, the space savings from
eliminating wheels on containers makes them rela
tively more attractive for intramodal shipment be
tween rail, air, and sea transportation. In either
TO FC or COFC traffic, goods need to be handled
only once, at the shipper’s dock. The container can
be transshipped through several transportation
modes, arriving at the consignee’s dock without
being subjected to reloading— a prime cause of
breakage, delay, and pilferage.
TOFC technology includes use of specially de
signed flatcars, tunnel, and track reconstruction, and
the design of terminal facilities for high volume
TOFC loading and unloading. The American Stand
ards Association has established standard container
sizes which will permit easier interchange between
railroads and other modes of transport. Trailer
Train, an organization of 36 railroads, had a pool of
50,000 TOFC cars in 1969. Trains of TOFC-loaded
flatcars operate on expedited schedules.
The handling of TOFC is covered by five major
plans approved by the ICC. Table 11 describes
these plans, including their major characteristics.
Table 11.
Plan 2 V i is growing very rapidly. Although, in the
first half of 1967, it accounted for only 5 percent of
all terminations— the final delivery of a trailer from
the railroad to a trucker or to the final consignee—
it had reached 26 percent in the first half of 1968.
On January 1, 1966, a private survey indicated
that there were 1,548 U.S. cities having piggyback
facilities.9 Of these, 1,391 had only trailer ramps;
the remaining 157 had mechanical loading or un
loading devices. Over 1,000 storage yards for use in
conjunction with piggyback operations existed in
1966, with a combined capacity of almost 54,000
units, the survey also indicated. Since 1966, rail
roads have continued to expand and improve their
storage yards.
For the period 1957-68, piggyback traffic has
been growing at a rate of about 16.5 percent a year.
Since 1955, the first full year of TOFC service, carloadings have risen from 168,150 to over 1.3 mil
lion, or 4.7 percent of total loadings in 1968 (see
chart 3 ). Assuming a continuation of this rate of
growth, piggyback traffic would reach a level of
about 3.9 million carloadings in 1975. However, as
shown in chart 3, the rate of increase in this traffic
has been moderating in recent years. Also,”because
of the increasing size of the traffic base and the
attendant congestion of facilities to handle TO FC /'
COFC freight, it appears that the 1957-68 rate of
growth cannot be sustained. Thus, it is estimated
9 R a i l w a y A g e , Oct. 31, 1966, pp. 22ff.
ICC approved piggyback plans, unit terminations, and revenues, first 6 months, 1968
Terminations of trailers and containers
Plan
number
Percent of total1
Characteristics
Loader & unloader
Mover to and
from tracks
Motor carrier
Motor carrier
At rates competitive with other modes.
Railroad
Shipper
Same as plan II.
Shipper
Shipper
Based on approximate cost of highway operation between
points served.
Railroad
Shipper
Shipper
Rail rates for loaded or empty cars. Allows for expense of
flatcar ownership.
Shipper
Shipper
Variable
Based on through-route and joint-rate coordination of rail
and motor carriers.
Variable (inter
change of modes)
Variable
Revenue
1
15%
8%
II
39%
43%
Railroad
11-1/2
26%
27%
Railroad
III
10%
7%
Shipper owns van;
RR owns flatcars.
IV
7%
12%
V
4%
3%
1 Percentages do not add to 100 due to rounding.
SOURCE: Interstate Commerce Commission.
Payment
Ownership of van
and flatcars
Terminations
Motor carrier
At motor rates. Motor carrier collects from shipper and
pays railroad pro-rata share.
TECHNOLOGICAL CHANGE IN THE 1960’s AND 1970’s
25
that a lower level of around lV i-2 million carloadings may be possible by 1975.
The unit train, like TOFC, is a high-priority train
that hauls a single commodity. It may haul any one
of a number of different kinds of bulk commodities
such as coal, bauxite, hot asphalt, steel slabs, and
various kinds of grains, in from 70 to 120 hopper
cars. Unit trains usually travel from a single destina
tion to their terminals on a continuous basis, al
though a recent variation would permit the renter to
move the train between several points. Railroads
transport about three-fourths of America’s coal; in
1969, about 21 percent of the total 560 million tons
produced moved by unit train. Several railroads and
electric power companies have negotiated long-term
contracts which often run for 20 years. They pro
vide for the movement of millions of tons of coal
annually by unit train.
The m ajor reason for the growth in the use of
unit trains since 1962 is the decreased cost per ton
carried, compared to previous methods used. These
savings result because unit trains bypass switchyards
and are subject to quick turnaround. Although high
in initial cost, these trains yield a rapid return on
the capital invested. According to one expert in the
field, unit trains return 16 percent net income on
revenue compared with only 8 percent for conven
tional cars.10
By 1975, it is likely that unit trains will be used
even more extensively than today because of the
formulation of special rates for various commodities.
One such target for special rates is the approxi
mately 55 million tons of coal— about 10 percent of
total production in 1969— moved annually by railwater combination. The development of new rates
that may divert this traffic to all rail movement is
being investigated.
Automatic classification yards
Classification yards are the center of railroad ac
tivity; thus, yards can be a major contributor to pro
ductivity. In 1970, according to the AAR, the aver
age serviceable car spent about 11 percent of its
time, either loaded or empty, moving in a train. The
remainder of the time it spent in classification yards,
or standing idle because of seasonal lulls, or waiting
to be loaded or unloaded. The experience of many
railroads indicates that automatic classification yards
bring about increased car utilization. O ther benefits
stemming from the automatic classification yards are
improved customer service through reduced transit
time; consolidation of work from outlying locations
with accompanying manpower savings; and preven
tion of claims from loss and damage.
The case of one railroad provides a good example
of the benefits to be derived from automatic classifi
cation yards. The railroad recently completed an au
tomatic yard at a cost of $75 million. This replaced
10
U n it T r a in O p e r a tio n s , Railway Systems and Manage
ment Association, Chicago, 1967, p. 22.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
26
A 200-car unit train moves coal directly from mine to customer site.
8 smaller yards and is the first in the industry to
employ a digital computer for car classification.1
1
Another road built a new yard that replaced six old
ones, reduced car throughput (receive, classify, and
dispatch) time by 5 -1 2 hours. Annual return on in
vestment, according to the railroad, was calculated
at 25 percent.
Technological changes in classification yards,
other than miscellaneous improvements (such as
closed circuit television, and use of radios and
weighing-in-motion), are divided into three m ajor
elem ents:
1. T he change from flat yards to hum p yards. This
simply introduces a slight incline into the switch
yard so that, instead o f having to provide all the
pow er to send a car from the point at w hich it was
cut from the train, the sw itch engine need only
reach the top o f the hum p at a relatively slow
speed and gravity provides the m om entum needed
to keep the car going into the desired classifica
tion track. T he engine need no longer go forward
and backward, but sim ply travels slow ly forward
toward the hump.
2. T he installation o f m echanical retarders lo
cated along the track. Operated by electro-pneu
m atic or hydraulic pow er, they “squeeze” the
w heels o f cars passing through them , thus slow ing
11 “PC’s
Milestone Yard Dedicated September 25,”
Sept. 28, 1968, p. 50.
12 “Railroads on the Automation Track,” E le c tr o n ic s ,
Jan. 9, 1967, pp. 168-70.
T ra ffic W o r ld ,
the car to the desired speed. W hile retarders were
used in som e yards before W orld W ar II, their
adoption w as speeded during the war because o f
m anpow er shortages. T hese retarders, initially
m anually operated, are now controlled by com
puters. T hese com puters calculate braking require
m ents according to car w eight, and the speed
o f the car.
3. Shifting o f the sw itching operation from the
yard to a con sole operator in the tower. W here
previously a man in the yard had to throw the
sw itch for each car or group o f cars, the tower
console operator now m erely operates sw itches on
the console before him . H e has a list o f cars being
sw itched and activates sw itches according to des
tinations.
The diffusion of automatic classification yards is
shown in table 12. The first of these yards appeared
in 1949, and by 1967, construction had been started
on 52 automatic classification yards. In early 1967,
according to a private survey, 118 freight yards out
of about 1,200 major classification yards had some
form of automatic control.12
Recent advances in technology have now made
possible a small-scale adaptation of the automatic
yards. These new yards operate efficiently with a
lower number of cars classified per day. These socalled “economy yards” first appeared in 1965 and
in 1967 there were three yards on which the up
grading had already been accomplished (see table
11 ).
Total expenditures for automatic classification
TECHNOLOGICAL CHANGE IN THE 19 60’s AND 1970’s
27
yards are not available. However, based on average
expenditures per yard of about $9 million, total ex
penditure estimates are in the area of one-half bil
lion dollars. Because of the high capital investment
required, ownership is concentrated in large compa
nies. All 52 major yards are owned by 22 class I
railroads; 28 of them are owned by only 8 railroads,
each of which owns 3 or more yards.
By 1975, there are prospects for limited further
application of large automatic classification yards in
the United States. One major supplier of equipment
estimates that 12 additional yards may be installed
by that time. The smaller automatic yard has much
further to go to reach complete diffusion. Some
300-400 smaller yards have traffic patterns of den
sity suitable for yard upgrading, but it is difficult to
estimate how many will be converted by 1975.
find out where their goods are, enroute, and the rail
roads to utilize vacant cars more fully. Reports can
be routinely issued on either a periodic or a request
basis, so that management can fully perceive exist
ing problems or forestall potential ones. Previously,
information on problem areas, potential or actual,
could be lost in the large volume of papers gener
ated by freight transactions.
The impact of the computer on railroads has been
pervasive. Computers aid in locating and switching
cars, in scheduling trains and in making motive
power assignments to trains. They are used also in
controlling inventory and in scheduling road mainte
nance and equipment use.
Advanced applications include simulation of clas
sification yards or other operating areas of the rail
road. Simulation obtains information on the
potential effects of changes in operating procedures
and physical configuration without spending the real
time and money required in actually trying new pro
cedures or constructing new facilities. Construction
projects are subjected to sophisticated control tech
niques, such as critical path method scheduling that
may result in time savings and can eliminate bottle-
Computers
The computer, in combination with microwave
data transmission, allows data to be transmitted for
accurate control of car movement. By establishing
car locations quickly, computers allow shippers to
Retarder operator controls the speed of coasting freight cars in classification yard.
28
Table 12.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 19 70’s
U .S. Automatic Classification Yards
Yard
Year
started
1. Moline, 111. (Silvis)..........................................................................
2. Kansas City, Kans. (Arm ourdale)...............................................
3. Kansas City, Kans. (Argentina)...................................................
4. Chicago, 111. (M arkham )................................................................
5. Pueblo, Colo.....................................................................................
6. Knoxville, Tenn. (Sevier)...............................................................
7. Birmingham, Ala. (N orris)............................................................
8. Gary, Ind. (K irk )............................................................................
9. Milwaukee, Wis. (Airline)..............................................................
10. Roseville, Calif.................................................................................
11. Chicago, 111. (Bensenville)..............................................................
12. Nashville, Tenn. (R adnor).............................................................
13. Hamlet, N. C....................................................................................
14. Houston, Tex. (Englewood)..........................................................
15. Chattanooga, Tenn. (Citico).........................................................
16. Pasco, W ash......................................................................................
17. Portsmouth, O hio............................................................................
18. Pittsburgh, Pa...................................................................................
19. M inot, N. Dak. (G avin)................................................................
20. St. Paul, M inn..................................................................................
21. Eugene, Ore.......................................................................................
22. Pittsburgh, Pa. (Conway)..............................................................
23. Atlanta, Ga. (Inm an)......................................................................
24. Buffalo, N. Y. (Frontier)...............................................................
25. Atlanta, Ga. (Tilford)..............................................................
26. Chicago, 111. (Corwith)...................................................................
27. Elkhart, Ind. (Y oung).....................................................................
28. Birmingham, Ala. (Boyles)............................................................
29. Youngstown, Ohio (G atew ay)......................................................
30. Chicago, 111. (Cicero)......................................................................
31. Pine Bluff, A rk.................................................................................
32. Kansas City, Mo. (Paul J. Neff)...................................................
33. Russell, Ky. (Fitzpatrick)..............................................................
34. Potomac Y ard ..................................................................................
35. Indianapolis, Ind. (Big F o u r)........................................................
36. Cumberland, M d..............................................................................
37. N orth Little Rock, A rk..................................................................
38. East Buffalo, N. Y ..............................................................
39. Roanoke, Va.....................................................................................
40. McGehee, A rk....................................................... .......................
41. Chicago, 111. (59th Street)..............................................................
42. Selkirk, N. Y. (Perlman Y d .)........................................................
43. Kansas City, M o..............................................................................
44. Decoursey, K y..................................................................................
45. Pocatello, Ida....................................................................................
1949
1949
1949
1950
1950
1951
1952
1952
1952
1952
1953
1954
1954
1954
1955
1955
1955
1955
1956
1956
1956
1957
1957
1957
1957
1958
1958
1958
1958
1958
1958
1959
1959
1959
1960
1960
1961
1961
1961
1962
1965
1966
1967
O
0)
Car
capacity
per day
Cost
(millions)
4,372
4,980
7,173
9,827
2,163
4,500
5,400
O
1,799
0)
7,497
7,905
5,030
7,719
6,300
4,700
10,300
828
3,237
3,245
5,063
12,000
7,800
6,100
2,141
5,871
7,873
6,151
5,848
5,777
2,820
7,156
1,861
0)
4,480
2,976
4,654
3,000
$ 3.3
1.5
0)
3.0
0)
4 .0
10.0
4.9
3 .0
o
5.2
14.0
8.0
7 .6
12.0
5.5
O
4.5
6 .0
4.9
2 .0
35.0
15.0
10.5
11.0
20.0
14.0
10.0
7.5
6.5
4.5
12.8
5.5
2.5
14.0
10.0
8.4
7.5
0)
O
2,608
0)
0)
o
0)
29.0
9 .0
11.5
0)
5,000
4,812
0)
29
TECHNOLOGICAL CHANGE IN THE 19 60’s AND 1970's
Table 12.
U .S. Automatic Classification Yards— Continued
Yard
46.
47.
48.
49.
50.
51.
52.
Car
capacity
per day
Cost
(millions)
0)
3,900
(x
)
0)
0)
0)
0)
0)
o
0)
Year
started
N orth Platte, N ebr..........................................................................
Grande Jet., Colo. (East)...............................................................
Riverdale, 111. (Blue Island)...........................................................
Detroit, M ich....................................................................................
Memphis, Tenn. (Tennessee).........................................................
Tulsa, Okla. (Cherokee).................................................................
East St. L o u is...................................................................................
0)
0)
0)
0)
0)
0)
(x
)
0)
0)
0)
0)
1965
0)
0)
0)
0)
0)
( x)
SMALL AUTOMATIC YARDS
53.
54.
55.
56.
Bellevue, O hio..................................................................................
Grandview, O h io .............................................................................
Richmond, C alifornia.....................................................................
Beaumont, Texas.............................................................................
0)
0)
0)
C1)
0)
1 Data not available.
SOURCE: T ra in s, January 1961; Association of American
Railroads.
necks in completing projects and save large sums of
money.
Computers were introduced into the railroads in
1955. By January 31, 1969, according to the Asso
ciation of American Railroads, there were a total of
252 computers installed or 6.8 percent more than
the number installed one year earlier.13
Leading railroads have adopted use of computersat about the same time as major companies in other
industries. F or example, according to a McGrawHill survey, in early 1965, 4 percent of all railroad
respondents had owned computers for 7 years or
more— the same as the average for either all m anu
facturing or all businesses (see table 13). However,
diffusion throughout the railroad industry has tended
to be generally slower than in other industries. The
survey indicated that 91 percent of railroad re
spondents that had computers had used them for
less than 3 years, compared with 71 percent for all
manufacturing.
Computers have shifted the basis for decision13 Data Systems Division, Association of American Rail
roads, July 1969.
making from precedent and experience to a more
objective one based on quantified data. By 1975,
railroad use of computers will be more widespread
and intensive. In this connection, the Association of
American Railroads notes that . . . “computers will
be a necessity for all class I railroads and most of
the smaller railroads.”
Console operators at data processing centers expedite tne
huge volume of paperwork handled daily by the railroads.
30
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
Signaling and communication improvements
Advances in signaling and communication tech
nology are having a continuing impact on all other
phases of railroad operations. The components of
signaling are becoming more and more a part of a
complex, comprehensive, interlocking communica
tion system. These parts include centralized traffic
control mechanisms, detectors of many different
kinds, microwave carrier capacity, and finally com
puters to process increasing amounts of information.
When the total communication system is completed,
it is likely to include continuous hotbox monitoring,
regional centralized traffic control, automatic car
identification and interroad information exchange on
car location anywhere in the United States.
Centralized traffic control (C TC ) is the activa
tion, by remote control, of signals and switches over
long stretches of track. A single operator controls
and monitors the train movement from a central
unit. The control panel is equipped with an elec
tronically animated track model of the controlled
track sections. By watching the model, the control
board operator, or dispatcher, is able to view the
track for occupancy. With push buttons and levers,
he activates the signals and switches to control traf
fic flow. This dispatcher determines train priority for
track use, rerouting of trains, and use of track for
passing and sidings; he also controls the distance be
tween trains. He uses the track model as a decision
making tool, since track occupancy and the posi
tions of signals and switches for main tracks and
sidings are immediately evident.
Before the advent of CTC, trains were operated
by use of time tables and written train orders only
(without signals an d /o r switches), with manual sig
naling by flagmen, and by block signaling, both
manual and automatic. This “block signaling” conTable 13. The age of operating computers, railroads and
other industries, 1965
Percent of companies indicating—
Industry
Less than
3 years
All manufacturing..........................................................
Railroids..........................................................................
Other transportation and communications...............
Electric utilities..............................................................
Commercial.....................................................................
All business1..................................................................
1 Excludes gas utilities.
SOURCE: McGraw-HMI Publishing Company.
3-6
years
7 years
and over
71
79
91
71
57
68
70
25
16
5
25
39
27
26
4
5
4
4
4
5
4
cept, introduced before 1872, is still basic to the
system in use today. It uses wayside towers for con
trol of signals and switches, and as relay stations for
information. The Interstate Commerce Commission
classifies CTC as a part of “automatic block signal
ing” and includes both track and road miles of CTC
in this total.
CTC is used to expedite rail traffic over the few
est possible miles of track, without the use of writ
ten train orders. Recent additions to basic CTC
systems have helped to promote faster rail traffic.
Added circuits allow signals to clear automatically
without the control board operator’s intervening. Di
rect voice communication between the CTC board
operator and the signalmen along the line, as well as
with the train and engine service employees, in
creases the system’s efficiency. Thus, dragging
equipment and hotbox indications can be immedi
ately reported to operating personnel for correction
when detectors are installed as a part of the CTC
system because of this radio link.
Centralized traffic control was first introduced on
the railroads in 1927; at that time, it accounted for
only 40 out of a total of 260,000 miles of main
track operated. During the period 1957-68, track
miles under centralized traffic control rose from
slightly over 32,000 to nearly 50,000. In 1957,
CTC represented about 12 percent of total main
track operated; by 1968, this proportion had in
creased to approximately 20 percent (see table 14
for m ileage). Moreover, the rapid growth in track
mileage under CTC systems since 1957 took place
while the total miles of main track operated were
declining. Undoubtedly, CTC has contributed
greatly to the ability of the railroads to handle the
increasing volume of traffic of recent years by pro
viding better track utilization. For example, install
ing CTC on a single track line may increase its ca
pacity up to 80 percent of the capacity of a double
track, but at a lower cost.
According to the Association of American Rail
roads, some form of centralized traffic control is
likely to become more common on all rail lines in
the years ahead. By 1975, the number of track
miles under centralized traffic control is likely to be
extended further, because of the increasing use of
computer programing of train operations to include
dispatching and scheduling. Computerization is also
likely to expand the miles of track that can be con
trolled by one CTC center and also may make pos
sible inclusion of entire roads into a single system.
TECHNOLOGICAL CHANGE IN THE 1960’s AND 1970’s
Detection devices. A hotbox or hot journal (axle)
involves the overheated condition of friction journals
or roller bearings, caused by inadequate lubrication.
If a hotbox is not discovered early, the temperature
of the journal or bearing may rise to a critical level,
so that the wheel end of the journal may burn off
and cause a derailment of the car.
Hotbox detectors are designed to measure tem
perature changes of journals and/or roller bearings
on passing railroad cars. Ideally, these detectors are
mounted alongside the track at about 30-mile inter
vals—usually in areas of CTC track. They scan the
journal box or the hubs of the car wheels and relay
the journal temperature of each wheel to CTC
offices or other central locations where this informa
tion is recorded on tape. Shoulcj- an overheated jour
nal be indicated, an alarm brings this fact to the at
tention of the recorder monitor. He, in turn, informs
the train engineer by signal or direct station-to-train
telephone.
The use of detectors replaces the old “sight and
smell” method of hotbox detection— a method that
has become less reliable with adoption of improved
technologies. Better journal lubricants and substitu
tion of journal pads for loose waste have greatly re
duced the visible smoke and flames generally result
ing from a journal’s overheating and ignition. Also,
visual inspection is virtually impossible, because of
faster moving trains and the increased use of roller
bearings.
The savings and other benefits that stem from the
31
Table 14. Track miles controlled by block signal and CTC
systems1 selected years, 1952-68
,
Year
1957 ........
1961 ........
1968.........
Total miles
of main
track
operated
Total
Automatic
Manual
269,300
263,222
227,897
139,594
131,177
123,007
110,689
107,563
116,612
28,905
23,614
14,411
Track miles of block signal system
Track miles
of centralized
traffic
control
32,033
38,264
48,984
Average Annual Percent Change
1957-61...
1961-68...
- 0 .6
- 2 .1
- 1 .6
-.9
- 0 .7
1.2
- 4 .9
- 6 .8
4.6
3.6
1 Coverage is for all U.S. railroads.
SOURCE: Report of the Section of Railroad Safety, Bureau of Railroad Safety and
Service of the ICC for year concerned.
installation of hotbox detectors have more than
offset the cost of their installation and maintenance,
even in the shortrun. According to one manufac
turer, for each potential hotbox detected the cost of
replacing the axle— up to $300—is saved. However,
the overriding factor for adopting hotbox detectors
is to prevent car derailments and other serious
wrecks which may result in equipment loss and per
sonal injury.
Hotbox detectors were introduced in the mid1950’s, but the first available accumulated total of
installation is for 1958, when 97 detectors were al
ready installed. In 1967 alone, 21 roads installed
132 detectors. In addition to wayside installation,
many roads are installing detectors at classification
yard entrances. It is expected that the installation of
wayside detectors will become increasingly more dif
fused, leading to continuous monitoring of the jour
nal temperatures, possibly by 1975.
In addition to hotbox detectors, railroads are in
stalling other new detector devices in increasing
numbers each year. With the advent of faster freight
and passenger speeds, there is an increasing empha
sis on safety and a growing need for new detectors
of all types. These increased from about 5,000 auto
matic devices in 1957 (including hotbox detectors)
to more than 8,000 in 1967 (see table 15). They
include “presence” detectors which are placed in
areas where falling rocks or other debris may be
found on the track, clearance or high-wide load de
tectors, high-water detectors, and smoke detectors.
Microwave. Railroads are increasingly adopting mi
Detectors mounted along the track automatically warn of
improper or dangerous equipment conditions.
crowave, a radio frequency above 890 megacycles
per second, to provide the wider bandwidth neces
sary for the growing volume of data, voice, and
message traffic. Route mileage of railroad micro-
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
32
Table 15.
1960-1967
Miscellaneous detectors installed, by year,
Year
Dragging
equipment
Broken
wheel
1960.........................
1961.........................
1962..........................
1963.........................
1964.........................
1965.........................
1966.........................
1967..........................
17
37
22
67
26
19
123
70
15
15
1
12
28
11
31
31
Presence 1
700
331
266
312
210
Other
79
19
1
3
18
5
3
Cumulative
total, all
detectors2
5,505
5i 691
5| 788
6,611
7,164
71611
8,303
3 8,617
1 No specific yearly data available before 1963.
2 Includes hotbox detectors.
3 Estimated.
SOURCE: R ailw ay Age, July 17, 1967; 1967, Railway Signaling and Communica
tions, January 1968.
wave has increased from less than 200 miles used
on an experimental basis in 1952 to more than
22,000 miles in 1966. A 1966 survey indicates an
annual rise of 25 percent in voice traffic and 8 per
cent in message volume; data transmission, however,
is increasing about 40 percent per year. In 1957,
the Federal Communication Commission (FCC) for
the first time formally assigned a band of frequen
cies for private railroad microwave. Both leased
common carrier and private, road-owned lines are
used. Many roads are using microwave to com
pletely supplant existing pole-lines.
Adoption of microwave offers substantial cost
savings that result from the avoidance of pole line
installation, particularly where the terrain is difficult
and requires many extra miles of circuits to span.
Also, savings occur with increased transmission reli
ability (especially in extreme weather), lower
maintenance costs and greater usage possibilities.
The General Supervisor of Communications for one
railroad reports a reliability of 99.99658 percent,
with only 15.81 minutes of downtime per year.
Facsimile transmission (as of waybills) and VHF
radio are two of the key uses of railroad microwave.
One railway system, for instance, is using a combi
nation of computer and data processing techniques,
with microwave and long distance xerography, to
provide real-time transmission, primarily of waybills.
This waybill contains data needed for operational
control— train consist, commodity weight, and con
signee. Centralized, operational control is dependent
on transmitting advance knowledge of crew, car,
and motive power requirements, as well as of cost
data— all information contained in the waybill or
able to be computed from its entries. Now in use on
several roads, facsimile transmission is expected to
become one of the principal uses of railroad microwave. VHF radio is being increasingly used in yard
and road operations and in maintenance-of-way
work, as well as in dispatching from wayside to
train, because the line communication system is not
adequate to meet the demand. Industry estimates of
35,000 route miles of private railroad microwave by
1970 and 50,000 route miles by 1975 are based on
rising requirements for current, accurate informa
tion.
Automatic Car Identification. Automatic car identi
fication (A CI) is a system that uses wayside scan
ners to locate cars carrying specially printed labels.
ACI is also helpful in scheduling cars for inspection
and for servicing. A label with the car initial and
description is placed on the exterior of the car, ca
boose, locomotive, trailer, or container. As the car
passes, wayside scanners “read” and transmit the
data from the label to decoders which provide the
user with all types of information about the car’s lo
cation, type, current load status, future availability,
priority status (in scheduling) and its weight (net,
gross, load). (See appendix II-3 for descriptions of
various applications of ACI.)
In the mid-1960’s the need for an industry-wide
ACI system was recognized by the Association of
American Railroads. A standard system was
adopted for industry-wide use beginning in the
spripg of 1969. According to AAR rules, all cars
and locomotives to be interchanged among the var
ious railroad systems must be equipped with ACI
labels by January 1, 1970. In the fall of 1969, it
was reported that roughly half the car fleet were la
beled and no railroad had less than 30 percent of
its cars labeled; also, about 50 ACI scanners were
in service. Scanners will be located at interchange
points and supply information to both railroads,
thus enhancing better scheduling coordination.
Transit time and the amount of clerical work will be
reduced substantially. Also, with a continuous infor
mation flow, the railroad industry is likely to im
prove customer service and, in turn, its position in
the competitive shipping market.
Maintenance of way changes
The term “maintenance of way” refers to the in
stallation and upkeep of railroad track, rail bed, and
associated structures. For some years following
World War II, maintenance of way work was done
TECHNOLOGICAL CHANGE IN THE 1960’s AND 1970's
33
by men who relied largely upon sheer brawn and
handtools. Gradually, these handtools were supple
mented with pneumatic powered tools and then re
placed by single-purpose machines. These machines
were designed for specific operations such as pulling
and driving spikes, unscrewing bolts, packing bal
last, and hoisting heavy materials like ties and rails
into place.
In the late 1950’s and early 1960’s, these single
purpose,
manually-operated machines
spread
throughout the industry. Concurrently, manufactur
ers also developed off-track vehicles which could
travel along the tracks for work purposes but could
also get off the track quickly when trains ap
proached. Sophisticated combination machines that
could raise and align the track, and level and tamp
the ballast in the road bed in a single operation
were also introduced. Still other machines were de
veloped that could pick up, clean and return ballast
to the roadbed; remove old ties and insert new ones;
or clean switch yards quickly.
A 1969 survey revealed that the degree of mecha
nization of the various operations involved in main
tenance of way ranged from 20 to 100 percent. (See
table 16.)
In addition, improved materials and techniques
are also contributing to a reduction in maintenance
labor requirements. Of major importance is the
adoption of continuous rail and the imminent spread
of the concrete tie. In 1967, over 7 percent of
main-line track was continuous-welded rail that was
laid in quarter-mile sections with extensive use of
machinery. This type of rail eliminates joints at the
rail-end and saves a significant amount of labor
once required to lift, cut off and relay short 39-foot
pieces of conventional rail. Concrete ties, which
tend to have longer useful lives than wooden ones,
are currently in experimental use on several roads
and their more widespread use is expected in the fu
ture. Other developments, such as two-way radio,
have contributed greatly to increasing work capacity
of the labor force. Radio communication permits the
work force to maximize work time before clearing
the track in ^advance of oncoming trains. In addi
tion, improved paints, paint application methods,
and the use of prestressed concrete for bridge con
struction reduce maintenance labor requirements.
The future adoption of “weathering” steel for con
struction purposes may also reduce manpower re
quirements for surface maintenance.
Routine maintenance and “clean up” around the
Table 16. Degree of maintenance of way mechanization,
by operation, 1969
Operation
Percent of mechanization
Transportation of gangs.............................................................
Track surface and lining (m ainline)........................................
Rail laying, cropping, transposing—
Jointed rail: .
Unloading and distribution........................................
Installation...................................................................
Pickup..........................................................................
Transposing.................................................................
Welded rail:
Unloading and distribu tion....................................
Installation..................................................................
Pickup..........................................................................
Transposing.................................................................
Normal handling.........................................................
Ballast unloading and distribu tion..........................................
Snow removal. .7 ........................................................................
Tie renewal:
Unloading and distribu tion................................................
Installation..........................................................................
Disposal................................................................................
Vegetation control:
Spraying...............................................................................
Cutting 7................................................................................
Road crossing maintenance.......................................................
Track inspection and field testing............................................
Right of way fences.................... 7.............................................
Cleaning ditches and drains......................................................
Track and yard cleaning............................................................
65
81
68
78
73
75
76
100
55
95
100
65
37
51
86
21
67
52
45
90
20
65
45
SOURCE: Roadmasters and Maintenance of Way Association, Chicago, 1969.
classification yard is also being speeded up by prefab
rication of track panels and retarder units. This re
duces the time and labor required to repair tracks
and transfers repair work indoors where it can be
done more efficiently. In both yard and line-of-track
work, snow removal attachments for some mainte
nance of way equipment and also specialized porta
ble snow removal equipment are replacing manual
removal of snow. Routine maintenance is also aided
by the use of herbicides which are mechanically ap
plied in yards and along the track.
In 1957, 151,453 men were maintaining the
345,832 miles of track operated, compared to
76,546 men maintaining 322,855 miles of track in
1967.14 The 50 percent decrease in the employ
ment of workers maintaining approximately the
same miles of track implies a significant increase in
productivity. However, these statistics include an
unknown number of miles of track used on which
little or no maintenance is performed. The subject
of deferred maintenance in the railroad industry is a
controversial one. Observers of the industry and
trade specialists have been studying this problem for
some time. According to one of these sources, for
the past several years maintenance has been pro14 In both years, the amount of track operated under
trackage right agreements is excluded as a means of avoid
ing duplication. The exclusion will also eliminate some
track which is jointly owned. Coverage is for class I rail
roads only.
34
ceeding at only about 60 percent of the rate re
quired to effect a complete rail renewal within 50
years. Within the industry, some spokesmen main
tain that many roads are not financially able to keep
abreast of their scheduled maintenance of way re
quirements.
The outlook for further mechanization in the pe
riod through 1975 is not clear, but some trends are
discernible. Increasingly, there are indications of a
continuing emphasis on maintenance of way equip
ment acquisition and activity. For example, when
capital expenditures were reduced by 22 percent,
from a 1966 high of $1.9 billion, total expenditures
for roadway and structures were reduced only 6
percent. Again in 1968, when total capital expendi
tures were reduced still further—by 23 percent—the
reduction in total expenditures for roadway and
structures was only 2.2 percent.
Passenger service
Positive efforts to improve passenger service have
been hampered for several reasons. From the cus
tomer’s point of view, coach ticket costs on rail
roads are frequently only slightly below air fare,
while additional time is required to go by rail. When
overnight travel is involved, sleeping accommoda
tions bring the cost above air fare. From the rail
roads’ point of view, passenger trains are costly to
run. For example, in 1967 expenses related solely to
passenger and allied services (including rents and
taxes) exceeded total passenger service revenues by
$138 million. Because of a lack of profits from pas
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
senger service, old equipment dating from the late
1940’s and early 1950’s, in general, has not been re
placed. This older equipment is difficult to maintain
and makes travel by railroad undesirable for many
persons. In addition, the problem has been com
pounded as train service has been cut to minimize
cash drains.
There have been only a few changes in long-haul
passenger service technology. One such change is
the Northeast Corridor Experiment in which cus
tomer response to frequently scheduled, well main
tained trains is tested. To achieve these goals, new
lightweight, high-speed cars have been developed
and stretches of welded track installed. Also, com
puterized ticket machines have been introduced to
expedite the process of purchasing tickets. Further
innovations in passenger service may follow at the
conclusion of the current experiment if it proves to
be successful.
Currently, attempts are being made in the U.S.
Congress to improve railroad passenger service. For
example, the Railroad Passenger Service Act of
1970 established the National Railroad Passenger
Corporation (NRPC) in the fall of 1970. A semi
public corporation, the NRPC has 8 directors who
serve on a 15-man board that has the responsibility
for operating most of the nation’s intercity passenger
trains effective May 1, 1971. Amtrack is attempting
to eliminate underutilized and unprofitable passenger
trains to the greatest extent possible, while still main
taining a network of passenger routes among selected
cities. The implications of these developments for
passenger traffic and for employment are outlined
in chapters V and VI.
Chapter III.
Productivity and Other Measures of Technological Change
Several quantitative measures are presented in
this section that are illustrative of technological
progress. These include output per man-hour, and a
variety of capital related measures such as the capi
tal output ratio.
Output per man-hour
Relating changes in output to changes in man
hours (i.e., productivity) is a useful although partial
indicator of the pace of technological change. The
change in the ratio reflects the changes in quality
and quantity of capital equipment, capital invest
ment, new materials, new approaches to marketing
as well as the procedural changes and many other
management measures that contribute to more effec
tive freight and passenger transportation. Measures
of output per man-hour reflect also changes in occu
pational mix, skill levels, training, and education of
the work force. Furthermore, the measure for the
industry reflects shifts in the importance of railroads
with different degrees of operating efficiency and the
long-term practice of shifting some railroad opera
tions to outside firms as discussed in the chapter on
employment.
Output per man-hour (productivity) increased
more rapidly between 1957 and 1969 than in the
previous decade, although productivity in the indus
try was already growing more rapidly than that of
the total nonfarm economy. Many factors contrib
uted to this increase, including the new technology
mentioned earlier, increased levels of capital ex
penditures, and cost-cutting in services caused by
financial stringency.
The average annual rate of increase in output per
man-hour for all employees in the railroad industry
was 5.2 percent between 1947-70, (chart 4 ), al
most twice the 2.7 percent increase for the total
nonfarm economy. Between 1957 and 1970, output
per man-hour of all employees in the railroad indus
try increased at an average annual rate of 6.0 per
cent.
Besides those already discussed, another factor
contributing to the increase in productivity in the
later period was the noticeable growth in output.15
For example, the average annual rate of change in
output between 1957 and 1970 was 2.2 percent,
compared with a decline of 0.4 percent between
1947 and 1957.1
6
Levels of output in revenue traffic units (RTU’s)
per man-hour vary widely among the railroads be
cause of differences in equipment, managerial, and
employee skills, size of railroad, and the type of
traffic carried— the latter influenced greatly by the
geographic districts 1 in 1965, based on the number
7
sents data on railroads which were selected as the
“best” railroad in each of the three ICC-designated
geographic districts 17 in 1965 based on the number
of revenue traffic units produced per all employee
man-hour in 1965. The railroads considered for
analysis were restricted to those having a labor
input in excess of 20 million man-hours annually.
The “best” railroads were chosen from among 22,
at the top of their geographic districts—West,
South, East— when
ranked
according
to
productivity.1
8
Those “best” railroads were studied to see if their
15 See appendix III-l for study concerning relationship
between output and output per man-hour growth.
16 This output measure is based on revenue traffic units
(RTU’s), a weighted combination of revenue freight tonmiles (one ton of freight hauled one mile) and revenue
passenger miles (one passenger carried one mile). (See ap
pendix III-3.) Also see U.S. Department of Labor, “In
dexes of Output Per Man-Hour, Selected Industries, 1939
and 1947-70,” BLS Bulletin 1692, Government Printing
Office, 1971, Washington, D.C.
17 A district is a geographical grouping, used by the In
terstate Commerce Commission, to which railroads have
been assigned for statistical purposes.
18 Although a particular railroad may be the “best” in its
geographic district, there may be other plants in other dis
tricts that exceed its level of productivity. For example, in
1965, five out of seven railroads in the Southern district
and two out of 10 in the Western district, had higher levels
of output per man-hour than the “best” railroad in the
Eastern district. For more detail on choice of railroads and
methodology, see appendices III-5 and 6.
35
36
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
Chart 4.
Railroads: O u tp u t and O utput Per M an-H o ur, 1947-70
Index (1967=100)
110
itllllill®
100
Output
II
Output per man-hour
A n n u a l rates o f change
P erio d
O u tp u tl
/
1 9 4 7 -7 0
1 9 4 7 -5 7
1 9 5 7 -7 0
—
* •» * « /
O u tp u t p e r all
e m p lo y e e m a n -h o u r
0 .5 %
-0 .4 %
2 .2 %
5 .2 %
4 .2 %
6 .0 %
1 R e v e n u e T r a f f ic U n its
S o u rc e : B ure a u o f L a b o r S ta tis tic s
1947 48
50
52
54
56
58
productivity growth patterns could be used as pre
dictors for the entire industry. Even though subse
quent analysis indicated that the approach was no
better than one which uses conventional trend anal
ysis, it showed a wide range in productivity levels
(output per man-hour) both among the “best” rail
roads and between each of them and the industry
average. (See table 17.) Also, analysis of the “best”
railroads revealed that the time required for the in
dustry as a whole to achieve the average “best”
60
62
64
66
68
1970
plant level of productivity has shortened—from
about 42 months to roughly 35 months— a situation
that would persist if the industry meets its capital
expenditure goals. This shortened lag results from
the more recent higher average rate of changes in
productivity (output per man-hour). The weighted
“best” railroad average productivity was about 23
percent above the industry for the 1956-66 period.
During the early 1960’s, when all railroads generally
were increasing their productivity, the average for
Table 17. Output (RTU’s) per man-hour: Ratios for “ best” railroads in a district and industry average, 1956-66
Ratio of “ best” railroads to industry average
Year
Railroad “ A” ,
southern district
1956................................................................
1957................................................................
1958................................................................
1959................................................................
1960................................................................
1961................................................................
1962................................................................
1963................................................................
1964................................................................
1965................................................................
1966................................................................
1.38
1.41
1.36
1.38
1.37
1.40
1.38
1.39
1.38
1.30
1.28
Railroad "B ” ,
eastern district
Railroad “ C” ,
western district
“ Best" railroad,
average
1.03
1.03
1.07
1.08
1.17
1.19
1.19
1.19
1.18
1 .0 0
1.06
1.03
1 .0 1
.99
1.03
1.07
1.09
1 .1 0
1.04
iT h e industry average differs slightly from the published BLS series due to omission
of switching and term inal company data.
1 .1 1
1 .1 2
1.18
1.23
1.28
1.32
1.32
1.30
1 .2 0
1 .2 2
1.25
1.27
1.24
1 .2 1
Industry
average
(R T U 's /M h r.)1
314.9
320.3
336.1
357.3
372.3
398.2
423.5
450.1
476.6
526.0
563.3
SOURCE: Bureau of Labor Statistics and Interstate Commerce Commission,
PRODUCTIVITY AND OTHER MEASURES OF TECHNOLOGICAL CHANGE
all of the “best” ones considered together increased
their margin over the industry. These roads in
creased their traffic more than the industry average,
indicating a business shift toward more efficient
plants.
Capital and output per unit of capital
The trend in output relative to the trend in value
of road and equipment owned by U.S. railroads is
an indicator of changes in the productivity of capital.
Although for productivity analysis, the flow of capital
services rather than physical stock is the preferred
measure, the data for this measure are not
available.1 In 1958 dollars, the value of road and
9
equipment owned by all U.S. railroads remained vir
tually unchanged between 1948 and 1967— about
$52 billion in each year. (See table'18.) During the
20-year period, the BLS index of output for class I
railroads (RTU ’s) rose about 4 percent from 114.2
to 118.8.
Railroad employment during the same period de
creased drastically with the result that the value of
road and equipment per employee increased from
$34,000 to about $75,000 per employee. However,
despite the change in this ratio, and the changing
quality of the equipment used, as described earlier,
the output relative to the value of road and equip
ment changed little. This resulted in large measure
from the nature of the industry which requires a
fleet of rollingstock that is in a non-earning status
much of the time.
O u tp u t a n d m a te r ia l in p u ts
20
Still another measure that is helpful in assessing
industry changes taking place is the trend in output
(BLS revenue traffic) relative to the input (includ
ing fuel, materials, and services), exclusive of capital
and labor discussed elsewhere. For the whole period
of 1947-68, output increased by less than one per
cent while the value of supplies consumed decreased
on a constant dollar basis by 39 percent. (See ap
pendix III-8.)
One of the outstanding reductions that occurred
was in the amount of fuel required per gross tonmile of train movement. Fuel is among the more im
portant inputs, excluding capital and labor, and the
amount required to move a gross ton-mile has
declined by 80 percent in the 1948-66 period, as
shown in chart 5. (See appendix III-9, 10.) Al-
37
Table 18. Value of road and equipment, number of employ
ees, all U.S. railroads, selected years, 1948— 1
67
Year
Road and equipment
(constant 1958
dollars, billions)
All railroad
employees
(000’s)
Road and equipment
per employee
(000’s of $)
1948...................................
1952....................................
1957...................................
1962...................................
1967...................................
51.9
5 3.6
53.3
51.0
52.1
1,517
1,400
3 4.2
38.3
4 7.5
64.1
74.6
1 ,1 2 1
796
698
Average Annual Percent of Change
1 948-57.............................
1957-67.............................
0 .3
-.2
-3 .3
-4 .7
3.7
4 .6
1 See Appendix 111-7.
SOURCE: Office of Business Economics, Bureau of Labor Statistics, Interstate Com
merce Commission.
though a major portion of this savings is due to the
transition from steam to diesels, quality improve
ments in the fuels, themselves, may also have been a
factor. Although small increments may be realized
as fuel savings in the future, the most likely further
economies resulting from motive power changes will
be from reduced maintenance man-hour require
ments. (See discussion on redieselization in chapter
II.)
Selected equipment utilization measures
Several other measures also highlight changes tak
ing place in various operations. These aspects of
train performance underlie, in part, the increases in
output per man-hour described earlier. Table 19
shows these measures which describe train and car
utilization. Changes in labor requirements associated
with changes in operation are pointed out specifi
cally in subsequent employment chapters. For exam
ple, the same changes in car construction that per
mit greater average speed also reduce the
requirements for maintenance men; similarly, a car’s
higher capacity frequently lends itself to mechanized
loading and adversely affects persons employed as
freight handlers. In general, as unit sizes increase
19 A flow measure reflects differences in usage and
efficiency of existing capital capacity and how these differ
ences affect varying levels o f output. See paper prepared
for the National Commission on Productivity which in
cludes a discussion on this subject by Jerome A. Mark, A s
sistant Commissioner for Productivity and Technology,
BLS, pp. 21-22.
20 These inputs include fuel, rail, and ties as well as
other materials and supplies needed to carry on day-to-day
business operations.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
38
Chart 5.
Fuel Requirements Per Gross Ton-M ile
in Class I, Linehaul Railroads
(Index 1957-59=100)
S o u rc e : S ee A p p e n d ix T a b le II I - 7 .
and transit times decrease, unit labor requirements
are reduced.
The first group of measures (line numbers one
through four) pertain to train operation and demon
strate the increases that have occurred in the
1957-68 period. Taken together, they show that the
average freight train has been increased in length
from 68.6 to 70.1 cars; in product carried from
1,424 to 1,768 tons; in speed from 18.8 to 20.4
miles per hour. This combination of increased
length, load and speed has resulted in the average
train’s carrying more freight per train hour— 34.5
percent more in 1968 than in 1957. Increased loco
motive power, tractive effort, and better bearings
have permitted the railroads to use these heavier,
longer trains while centralized traffic control has re
duced train delays and contributed to increased
average train speed.
The second group of measures (line numbers
5-8 ) relate to the use of cars. In the 1957-68 pe
riod, the average daily distance traveled was in
creased from 47.0 to 53.9 miles; the average freight
carload increased from 43.8 to 51.8 tons, while the
average capacity increased from 54.5 to 64.3 tons.
Taken together, these increases in distance traveled,
carload weight, and car capacity have resulted in an
increase of almost 40 percent in the ton-miles pro
duced per freight car day.
Another measure related to freight car utilization
is the ratio of annual revenue and nonrevenue tonmiles carried to annual capacity available. As shown
below in table 20, utilization of railroad-owned and
leased cars increased 14.8 percent between 1955
and 1968, from 7,040 ton-miles to 8,079 ton-miles
per ton of capacity. The increase in utilization may
be due, in part, to the exclusion of private cars.
Changes in car material and construction, com
bined with better classification yards and higher
Table 19. Freight equipment utilization, 1957 and 1968
Line
number
Occupations
1957
1
2
Cars per average freight tra in .......................* ,...................................................................
Average freight train load (to n s)........................................................................................
Average freight train speed..................................................................................................
Net ton-miles per train hour................................................................................................
Average daily car m ileage....................................................................................................
Average freight carload (to n s ).............................................................................................
Average freight car capacity (to n s)....................................................................................
Ton-miles per freight car-d ay.............................................................................................
1 ,4 2 4.0
18.8
2 6,8 33 .0
47.0
4 3.8
54.5
975.0
3
4
5
6
7
8
SOURCE: Y earbook o f R ailroad Facts, 1969 and 1970 editions, Association of
American Railroads.
6 8 .6
1968
70.1
1 ,7 6 8 .0
20.4
3 6,0 91 .0
53.9
51.8
64.3
1,361.0
Percent change
1957-jp8
.
+ 2 .2
+ 2 4 .2
+ 8 .5
+ 3 4 .5
+ 1 4 .7
+ 1 8 .3
+ 1 8 .0
+ 3 9 .6
PRODUCTIVITY AND OTHER MEASURES OF TECHNOLOGICAL CHANGE
Table 20. Revenue and nonrevenue ton-miles per ton of
capacity, class I railroads, selected years, 1955—
68
Year
Total revenue
and nonrevenue
ton miles
(billions)
Aggregate capacity
of freight cars
in service 1
(millions of tons)
Revenue and
nonrevenue ton
miles per ton
of capacity
1955.................................
1959.................................
1963.................................
1966.................................
1968.................................
642.2
588.2
632.9
749.6
755.7
91.2
92.3
85.9
91.4
93.5
7,040
6,375
7,364
8,197
8,079
1 Cars in service of class I railroads, owned and leased at close of year.
SOURCE: Interstate Commerce Commission.
train speeds, are largely responsible for better car
utilization by the railroads. Since car purchases ac
count for about 55 percent of average annual rail
road capital expenditures, slight improvements in
39
car utilization can have great significance for the
railroads’ overall capital spending program. A small
gain in utilization effectively increases the car fleet
size, thus freeing capital for other areas.
The technological advances that seem to promise
the greatest return on investment for the future are
those that increase car utilization by increasing train
speed and daily car mileage. Areas of capital ex
penditures that would facilitate these developments
are improvements in right-of-way and track and
structure, as well as communication and signaling
— particularly automatic car identification. As car
utilization is increased, without enlargement of the
fleet, the railroads’ return on investment may be en
hanced, attacting more capital to the industry and
permitting it to preserve its market share of intercity
freight.
C h a p te r IV.
E m plo ym ent T ren d s
This chapter reviews trends of the industry’s em
ployment profile, which serve as a basis for estimat
ing future employment levels. It also provides infor
mation on the regional distribution of employment,
the age of workers, and the employment of women
and Negroes. Projected employment levels, which
take into account the specific impact of technologi
cal changes, are presented in chapter V.
change,” has cut down on engine rebuilding in rail
road shops. The leasing of equipment that is related
to technological changes in the railroad industry—
communication and computer systems, for example
— generates employment in other industries which
manufacture and service such equipment.
Employment trends
Distribution of Employment. In early 1967, nearly
In 1969, employment of class I railroads stood at
578,277 workers, down about 26 percent from
1960, and 57 percent from 1947 (see table 2 1 ).
During this same period, the trend in employment
for production workers followed a similar pattern,
although declining slightly as a proportion of total
employment.21
A t the same time that employment in the industry
has been declining, the unemployment rate has been
lower than for the economy as a whole. In 1969,
the unemployment rate for railroad and railway ex
press workers was 1.6 percent; for all workers, it
was 3.5 percent. This better-than-average record re
flects, in part, the relative success of the efforts of
the industry and unions to provide adjustment meas
ures, as described in chapter VI.
Employment Shifts. In addition to primary employ
ment changes brought about directly in the industry
work force by technology, changes in employment
have also resulted from the long-standing practice of
shifting employment to outside firms which supply
equipment to the industry. For example, a growing
proportion of the freight car fleet is privately owned
(14.3 percent in 1960 and 17.1 percent in 1967);
this has contributed to a drop in manpower require
ments in the “maintenance of equipment and stores”
category. Similarly, “piggybacking” has shifted work
previously done by railroad workers to freight for
warders and regular trucking firms. Also, the ex
change of one diesel locomotive unit for another
through purchase, a practice known as “unit ex
Characteristics of the railroad workforce
two-fifths of all railroad employment was concen
trated in 23 Standard Metropolitan Statistical Areas
(SMSA’s), compared with about one-third in 1957.
(See appendix IV -1.) 22 The shift of railroad em
ployees from locations mainly on the rural railroad
rights-of-way to urban communities resulted, in part,
from the consolidation of railroad car classification
yards and rolling stock maintenance facilities.
Changes in communication technology have also
contributed to this shift to urban centers.
Chicago, Illinois, the leading SMSA in terms of
railroad employment (48,600 employees) is the hub
of railroad traffic; it serves as the point for trans
shipment of eastern m anufactured goods to the west
and south, as well as eastbound agricultural prod
ucts. In addition, it serves as a terminal point for
goods leaving the country via the Great Lakes route.
St. Louis, Missouri-Illinois and Kansas City, Missouri-Kansas, with 15,600 and 10,800 employees
respectively, are both gathering points for agricul
tural products. New York City, N.Y. (19,900 em-
See appendix III-3 and 4 for data.
Except in New England, an SMSA is a county or
group of contiguous counties which contains at least one
central city of 50,000 inhabitants or more. In addition to
the county, or counties, containing such a city, or cities,
contiguous counties are included in a standard metropolitan
area if according to certain criteria they are essentially
metropolitan in character and sufficiently integrated with
the central city. In New England, “Metropolitan State Eco
nomic Area” is a county or group of counties which is
characterized by a distinctive combination of social and
economic characteristics.
21
22
41
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
42
Table 21. Railroad (class I) employment and traffic,
selected years, 1947-69
Year
Total
employment
(in thousands)
Revenue
ton miles
(in billions)
Revenue
passenger-miles
(in billions)
1947.......................................................
1 ,3 5 2 .0
654.7
4 5.9
1952.......................................................
1953.......................................................
1954.......................................................
1 ,2 2 6.2
1 ,2 0 6.5
1 ,0 6 4 .6
614.8
605.8
549.3
34.0
31.7
29.3
1955.......................................................
1956.......................................................
1957.......................................................
1958.......................................................
1959........................................................
1 ,0 5 7.2
1 ,0 4 2.6
984.8
840.8
815.2
623.6
647.1
618.2
551.7
575.5
28.5
28.2
25.9
23.3
1960.......................................................
1961.......................................................
1962.......................................................
1963.......................................................
1964.......................................................
780.5
717.5
700.2
679.3
665.0
572.3
563.4
592.9
621.7
658.6
21.3
20.3
19.9
18.5
18.2
1965.......................................................
1966.......................................................
1967.......................................................
1968.......................................................
1969.......................................................
640.1
624.9
602.6
590.5
578.3
697.9
738.4
719.5
744.5
767.2
17.4
17.1
15.2
13.1
1 2 .2
ployees), Philadelphia, Pennsylvania (15,200), Los
Angeles, California (1 3,800), and San Francisco,
California (1 1 ,5 0 0 ), are all overseas terminal
points. New York is also a distribution point for
east coast commodity shipments, with San Francisco
serving as a m ajor import-export center for trade
with the Orient. Pittsburgh, Pennsylvania (13,900)
is a city where activity centers around processing
raw materials into primary metals— bulky, heavy
products which are best transported by rail. (See ap
pendix IV -1 for railroad employment in major
SMSA’s and appendix table IV-2 for definitions of
these areas in 1957 and 1967.)
Women Employed by Railroads. In 1966, the rail
roads employed 58,000 women, about 6 percent of
total railroad employment, according to data com
piled by the Railroad Retirement Board. Their em-
Table 22. Age distribution of railroad employees, 1957
and 1967
Percentage distribution
1957
Total i _________
34 and under.
3 5 -4 4 ...............
4 5 -5 4 .......................................................................................................
5 5 -6 4 .......................................................................................................
65 and over...........................................................................................
1 Includes employees whose age was not reported.
SOURCE: U.S. Railroad Retirement Board.
Year
1944
1947 ______
1957
_
1966
E m ployees
in service
during year
(000’s)
2,903
2,470
1,510
944
W om en
(000’s)
268
140
92
58
Female em ploym ent
as percent o f all
em ployees
9.2
5.7
6 .1
6 .1
2 2 .0
SOURCE: Association of American Railroads and Interstate Commerce Commission.
Age
(On birthday in given year)
ployment reached a high point during World W ar II
when they accounted for 9.2 percent of total
railroad employment, reflecting the general increased
labor force participation by women during that time.
1967
1 0 0 .0
26.9
19.7
25.3
22.3
5 .6
Soon after the end of World W ar II, men began
replacing women in many of the more strenuous
railroad occupations and some women returned to
their traditional clerical and service occupations. By
1966, they accounted for 66 percent of workers in
the “clerks and other office employee” category.
While technological and procedural changes have
had an impact on office employment, the decline in
these occupations (discussed fully in chapter V ) has
been less rapid than that of the total railroad indus
try. The increasing use of data by the industry may
cause this employment sector to remain fairly stable,
thus causing an expansion in the proportionate share
of jobs held bv women in the 1970’s.
Age. The age distribution of an industry’s employ
ment supplies important clues about present and fu
ture job opportunities. The railroad industry’s work
force had a median age of 46.4 years in 1967, up
from 44.4 years in 1957. (See table 22 for distribu
tion of employment by age.) Between 1967 and
1975, it is estimated that 235,000 railroad em
ployees will reach age 65, providing an increasing
number of potential job vacancies. These cover
workers at all skill levels and in jobs requiring vary
ing levels of education to enter. F or example, the
largest single number of potential retirees will be
among shop craftsmen; the next largest, among
clerks and other office employees; and the third
largest among supervisors and professional workers
(see table 23). Relatively large numbers of retirees
will also be found among miscellaneous maintenance
of way workers.
1 0 0 .0
29.6
21.7
SOURCE: Annual Report, Railroad Retirement Board.
2 1 .6
20.5
6 .4
Employment of Negroes and Spanish-Sumamed
Americans. Negroes and persons with Spanish sur
names made up a relatively small proportion of total
railroad employment in 1966, according to a survey
of 788-establishments conducted by the U.S. Equal
EMPLOYMENT TRENDS
Table 23.
43
Estimated retirements, by occupation, 1967-75
Occupational category
T o ta l................................................................................................
Office employees:
Executives, officials, and staff assistants................................
Supervisors and professionals...................................................
Station agents and telegraphers................................................
Clerks and other office employees............................................
Train and engine service employees:
Engineers...........................................................................................
Conductors........................................................................................
Firemen and hostlers....................................................................
Brakemen, baggagemen, and switchtenders.........................
Gang forem en............................................................................................
Maintenance employees:
Way and structures c rjfts m e n ....................................................
Shop craftsm en...............................................................................
Way and structures helpers and apprentices........................
Shop helpers and apprenticed....................................................
Other maintenance-of-way employees....................................
Other shop and stores employees.............................................
Station and platform employees........................................................
All other employees................................................................................
Number
Percent
235,000
1 0 0 .0
6,496
2 .8
2 1 ,0 1 2
Among the Spanish surnamed Americans, slightly
over half the women were in white collar employ
ment (office and clerical) compared with 6.2 per
cent of the males. Among Negroes, 9.1 percent of
the women employed on railroads were in white col
lar jobs and only 2.3 percent of the men.
Relatively more Negroes are employed in the rail
road industry than in industry as a whole— 9.4 per
cent compared with 8.2 percent in 1966, according
to the EEOC study. Negro workers, who comprise a
high proportion of workers in low skill occupational
categories, will continue to be in demand because of
increased maintenance of way work, much of which
has been deferred for years and because of the large
number of older workers in these job categories.
(See table 23.) In general, Negro workers with ap
propriate education and training are likely to have
better prospects in the future for higher level work
because of the growing trend toward hiring Negroes
for such jobs and for upgrading their skills.24
9 .0
3 .4
11.5
7,897
26,983
15,642
13’ 741
5,320
12,990
13,642
6 .6
7,470
35,802
799
5,023
17,961
10,544
10,842
22,836
3 .2
15.2
.3
5 .8
2 .3
5.5
5 .8
2 .1
7.6
4 .5
4 .6
9.7
SOURCE: U.S. Department of Labor, Bureau of Labor Statistics, based on Railroad
Retirement Board data.
Employment Opportunity Commission (E E O C ).23
In 1966, there were 54,250 Negroes employed in
these establishments and 16,703 persons with Span
ish surnames; both groups were heavily concentrated
in blue collar jobs, often as operatives or laborers.
(See table 2 4 ). About one-fifth of the Negro rail
road workers were employed as service workers.
Spanish surnamed Americans comprised 6.9 percent
of white collar jobs, with 2.6 percent for Negroes.
Table 24.
23 Equal Opportunity Report N o. 1, Part II, Job Patterns
for Minorities and Women in Private Industry, 1966, U.S.
Equal Employment Opportunity Commission, Washington,
D.C., 1968.
24 “where do Railroads Stand on EEO?” Tom Shedd,
Modern Railroads, February 1969, pp. 40-42; Part II, pp.
44, 45.
Railroad employment of minority groups, 1966
Blue collar occupations
Employee category
All Employees (SIC 40)
Total
employment
648,136
1 0 0 .0
34,992
Spanish Surnamed American
M a le ......................................................................................................
Total blue
collar
employment
151,547
23.4
476,068
225,388
156,189
94,491
Occupational distribution...................................................... 14.6
24.1
683,128
1 0 0 .0
16,458
30,958
88.5
3,231
9 .2
599
1.7
182,505
26.7
479,299
70.2
15,281
9 2.8
3 .2
1 0 0 .0
Percent of to tal........................................................................
6 .2
2 .5
.7
Fem ale.................................................................................................
Occupational distribution......................................................
Percent of to ta l........................................................................
245
T o ta l.................................................................................................
16,703
Negro
M a le ......................................................................................................
Percent of to ta l........................................................................
.7
129
52.7
.4
1 0 0 .0
Percent of to tal........................................................................
1,146
6 .9
2 .4
1 0 0 .0
52,478
1 0 0 .0
8 .1
Fem ale.................................................................................................
Occupational distribution......................................................
Percent of to ta l........................................................................
1,772
T o ta l...............................................................................................
54,250
1 0 0 .0
5.1
1 0 0 .0
Percent of to ta l........................................................................
SOURCE: U.S. Equal Employment Opportunity Commission.
Craftsmen
1,017
1 0 0 .0
Total (788 establishments).......................................................
Occupational distribution.....................................................
Total white
collar
employment
7 .9
101
Operatives
Laborers
Total
service
workers
20,521
3 .2
1 .1
2,260
6 .5
803
2 .3
225,987
33.1
156,561
22.9
96,751
14.2
21,324
3.1
4,656
28.3
2,366
14.4
1.5
8,259
50.2
8 .7
160
95
3 8.8
4 .2
15
175
2 .1
0
372
6
1.0
.8
41.2
3.1
.0
.0
2 .4
4,656
27.9
2,372
14.2
1.5
8,354
50.0
.6
15,382
92.1
3 .2
8 .6
.8
1,224
2 .3
40,937
78.0
4,888
9 .3
.8
8 .6
2 .2
7,948
15.1
5.1
28,101
5 3.5
29.7
10,317
19.7
50.3
162
9.1
.5
1,415
79.9
4 3.8
69
3 .9
11.5
56
3 .2
15.1
1,290
7 2.8
57.1
195
42,352
78.1
4,957
9.1
8 .8
2 .2
8,004
14.8
5.1
29,391
54.2
3 0.4
1,386
2 .6
.8
2 .1
1 .6
6 .1
1.9
1.0
1 1 .0
24.3
10,512
19.4
4 9.3
C h a p te r V.
E m ploym ent O utlook and Im p a c t of Tech nolo gical
C hange on O ccupational S tru c tu re
This chapter provides an estimate for class I rail
road employment as well as the underlying assump
tions about output (traffic) and technological
change. It also relates future changes in employment
in specific occupational categories to the major tech
nological changes that have affected them in the
past.
Employment outlook
The outlook for an upturn in railroad employ
ment by 1975 is not promising. Technological and
other changes which have influenced output and
productivity, and in turn employment trends in re
cent years, are likely to persist and to become even
more pervasive in the years ahead. Thus, the most
optimistic estimate of class I railroad employment in
1975 is that it may total 540,000 persons, compared
with about 600,000 in 1967.25 Even though this es
timate points to a continued decline in class I rail
road employment, many job opportunities will con
tinue to arise because of the growing need to
replace workers who die or retire. Also, because of
changing job requirements in this industry, which
stem from the technological changes and other’s
cited earlier, a growing need for workers with higher
levels of education and skill is likely.
Any employment estimate for class I railroads
must take into consideration trends in output
(freight and passenger traffic) as well as overall
productivity changes. The trends in output per all
employee man-hour, (productivity) have been dis
cussed previously in chapter III. In estimating future
trends in productivity, it was assumed that the most
recent rate of growth would continue through
1975.26
Trends in freight traffic. Between 1947 and 1967,
the average annual increase in revenue ton-miles
was 0.5 percent but since 1961, freight traffic has
been rising at an average annual rate of 3.6 percent.
Projections of future growth in revenue ton-miles
assume, as a minimum, the continuation of this
trend between 1961-67. This conclusion arises both
from the great increase in all intercity freight traffic
(revenue ton miles of 1.7 trillion in 1967, compared
with 1.3 trillion in 1961) since the 1960-61 dip in
economic activity, and also from the ability of the
railroads to maintain their competitive position visa-vis other transportation modes. The impact of the
Vietnam buildup on the amount of railroad freight
traffic carried is difficult to measure; however, total
railroad carloadings have increased slightly since
1964. Between 1964 and 1965, carloadings rose by
0.3 percent; the following year (1966) carloadings
increased by 1.8 percent. The cessation of hostilities
in Vietnam will have some effect o n ‘the growth of
railroad traffic, but apparently the overall reduction
is unlikely to alter the 1961-67 trend greatly be
cause of the underlying strength of the American
economy.
Should the 1961-67 trend persist through 1975,
revenue ton-miles may total 954 billion, up onethird from the 1967 level. A somewhat higher level,
about 985 billion revenue ton-miles is possible,
however, if the stable relationship continues between
this output measure and constant dollar Gross Na
tional Product (G N P ) which has been growing at
the long-term rate of 4 percent yearly.
Trends in passenger traffic. The long-term rate of
decline in revenue passenger miles has been modi-
25 This estimate of 1975 class I railroad employment is
consistent with the estimate of 570,000 workers employed
in all railroad transportation published earlier in T o m o r
r o w ’s M a n p o w e r N e e d s , Supplement Number 2, U.S. D e
partment of Labor, Bureau of Labor Statistics, 1970. The
Bureau of Labor Statistics employment projections utilize
regression analysis and take account o f information from
the Bureau’s economic growth model and its industry-occu
pational matrix.
2 6 An alternate productivity projection based on regres
sion analysis was developed by the Bureau. The method is
discussed in appendix III-l.
45
46
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
fled slightly since 1961; at this time it slowed to an
average annual rate of 4.7 percent. By comparison,
this rate of change between 1947 and 1967 was
—5.4 percent; during the early part of this 20-year
period, a dramatic shift had occurred from railroad
to air passenger travel, particularly among sleeping
and parlor car patrons. Coach traffic had also de
clined between 1947 and 1957, but at a considera
bly slower pace. During this period, the sleeping and
parlor car traffic decreased at an average annual
rate of 11.1 percent— over twice as fast as the rate
for coach traffic. The major factor modifying the
drop in revenue passenger miles has been commuter
traffic, which has averaged about 4 billion passenger
miles a year since 1960. This, together with a possi
ble increase in corridor-type traffic (see Research
and Development section of chapter I) and the op
eration of intercity passenger trains by Amtrak, may
slow the rate of decline in passenger traffic.
Changes in Occupational Structure, 1957 and 1967.
Each of the seven summary reporting occupational
categories, as defined by the Interstate Commerce
Commission registered declines in employment, al
though the relative proportion of specialized and
high level manpower in the industry tended to grow
(see table 2 5 ). The classes of occupations most ad
versely affected by the drop in employment between
1957 and 1967 generally were those occupations
that required little formal education, training, or ex
Employment in certain occupations increased dur
ing the 1957-67 period. Among these were chief
claim agents or investigators (ICC 22) in the pro
fessional and clerical m ajor occupational group and
portable equipment operators (ICC 35) and gang
foremen (ICC 38, 39) in the maintenance of way
and structures group. In addition, while employment
in skilled trades declined in absolute numbers, this
decline was substantially below the industry average
annual rate.
Technology and occupational trends
To get more detailed information about specific
occupational categories, as distinct from the broad
trends in employment described earlier, technologi
cal, managerial, marketing and other changes that
have affected employment of class I railroad work
ers were examined independently for their impact on
workers in particular occupations.27 Each of the
128 ICC categories was reviewed to ascertain the
kinds of work done by persons reported in a partic
ular category and an evaluation was then made of
the relationship between the various technological
changes and job content. To facilitate analysis, some
innovations that affected the same classes of occupa
tions were grouped together. Also, when more than
one technological change affected a single occupa
tion,- that occupation was included with the change
that had the greatest impact on employment. For
perience to enter, such as the helper or laborer job
classifications concerned with either maintenance of
way and structures, maintenance of equipment and
stores, or transportation. Those occupations which
experienced declines faster than the average annual
industry rate of 4.7 percent between 1957-67 are
listed in table 26.
2
7 It was not possible, however, to assess fully the proba
ble impact on productivity and employment of any sub
stantial increase in the rate of abandonment of unprofitable
lines. At the time this report was being prepared, abandon
ment of unprofitable lines was a subject being discussed in
the industry but the positions of the various interested par
ties had not been determined.
Table 25. Changes in class I railroad employment, by major occupational group, 1957-67
Employment
ICC reporting title(m ajor occupational group)
1957
1967
Average annual
percent change
1957-67
Number
Percent
Number
Percent
T o ta l.......................................................................................................................................................
986,001
10C.0
610,191
100.0
-4 .7
Executives, officials and staff assistants.................................................................................................
Professional, clerical, and general............................................................................................................
Maintenance of way and structures..........................................................................................................
Maintenance of equipment and stores....................................................................................................
Transportation (other than train, engine, and y a r d )..........................................................................
Transportation (yardmasters, switch tenders, and hostlers)...........................................................
Transportation (train and e ngine).............................................................................................................
16,264
190,046
170,766
246,358
115,293
14,199
233,075
1.7
19.3
17.3
2 5.0
11.7
1.4
2 3,6
15,501
131,360
90,462
138,488
57,020
9,8 2 8
167,532
2 .5
21.5
14.8
22.7
9 .3
1.6
2 7.5
- .5
-3 .7
-6 .2
-5 .6
-6 .8
-3 .6
-3 .3
SOURCE: Interstate Commerce Commission.
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
47
Table 26. Occupational categories with greatest employment decreases, 1957-67
Employment
ICC
line
no.
1957-67,
percentage
decrease
Title
1957
T o ta l..................................................................................................................................................................................................
Class 1, linehaul employment...................................................................................................................................................
65
23
62
92
103
64
37
91
74
32
42
104
107
49
128
43
72
96
86
95
115
1967
187,553
986;001
61,039
610,191
67
38
Helper apprentices (M . of E. and stores)...........................................................................................................................................
Miscellaneous trades workers (other than plum bers)...................................................................................................................
M olders..........................................................................................................................................................................................................
Truckers (stations, warehouses, and platform s).............................................................................................................................
Crossing and bridge flagmen and gatem en.......................................................................................................................................
Skilled trades helpers (M. of E. and stores)....................................................................................................................................
Pumping equipment operators..............................................................................................................................................................
Callers, loaders, scalers, sealers, and perishable-freight inspectors........................................................................................
Stationary firemen, oilers, coal passers, and water tenders.......................................................................................................
Bridge and building painters.................................................................................................................................................................
Section m e n .................................................................................................................................................................................................
Foremen (laundry) and laundry w orkers...........................................................................................................................................
Switch ten ders............................................................................................................................................................................................
Signalman and signal maintainer helpers.........................................................................................................................................
Yard firemen and helpers........................................................................................................................................................................
Maintenance of way laborers (other than track and roadway) and gardeners and farm ers............................................
General laborers (stores and ice, reclamation, and tim ber-treating plants)..........................................................................
Chefs and cooks (restaurants or dining c ars)...................................................................................................................................
Baggage agents and assistants..............................................................................................................................................................
Stewards, restaurant and lodging-house managers, and dining-car supervisors.................................................................
Road passenger baggagemen................................................................................................................................................................
1,023
791
163
10,425
6,983
37,002
258
12,099
1,563
1,858
69,264
419
2,655
2,291
20,160
1,972
11,202
3,060
364
1,203
2,798
215
183
39
2,499
1,806
9,752
74
3,675
479
639
24,277
149
950
833
7,447
738
4,211
1,232
151
507
1,183
79
77
76
76
74
74
71
70
69
66
65
64
64
64
63
63
62
60
59
58
58
SOURCE: Interstate Commerce Commission.
Redieselization
and greatly improved diesels). This employment
represents a drop of 47 percent since 1957.28 The
average annual decline in employment for the group
was 6.2 percent, substantially above the 4.7 percent
average for the total of the industry’s class I rail
roads. Table 28 shows the occupations that com
prise the group and employment changes since
1957.
Among those occupations with the greatest rates
of decline in employment were molders (ICC 62)
who have all but disappeared from the industry.
They accounted for 39 workers in 1967, and it is
likely that this occupation will vanish by 1975 as
workers die or retire.
Employment in two other occupations in the
group also declined rapidly. Skilled trades helpers
(IC C 64) and helper apprentices (ICC 65) totaled
9,967 in 1967, down from 38,025 in 1957. This de
cline of 74 percent is closely associated with de
creased unit maintenance man-hours for new loco
motive series. As an example of the sharp drop in
man-hour requirements, table 29 sets forth require
ments for locomotives introduced at different times,
representing first- and second-generation diesels and
improvements in each stage of development. It can
be seen from the table that unit man-hour require
ments for maintenance of second-generation diesels
In 1967, there were 78,033 railroad employees
working in 16 occupations that had been signifi
cantly affected by redieselization (purchase of new
28
See R a i l r o a d S h o p c r a f t F a c tf in d in g S tu d y , U.S. Depart
ment of Labor, 1968, for a detailed analysis of year-to-year
trends in these occupations.
each grouping of innovations, the occupations af
fected and the total num ber of workers employed
was determined for the year 1957 and then compared
with employment levels in 1967. Then, taking into
account past and expected trends in the diffusion of
the technological change and their impact on past
employment, estimates for the various occupations
were obtained for the year 1975. Table 27 summa
rizes employment related to the major groups of in
novations for 1957 and 1967, and provides an esti
mate of the probable impact of these changes on
employment by 1975. Using this method to estimate
class I railroad employment implies that this total
will reach 540,000 by 1975.
Altogether, 10 technological innovation groupings
were selected as having a major impact on class I
railroad employment. These are described in chapter
II and include redieselization; improved cars; facility
relocation and improvements; unit trains and “pig
gyback;” automatic classification yards; computers;
centralized traffic control; detectors, microwave and
automatic car identification; maintenance of way;
and passenger service changes and improvements. In
this chapter, tlje innovation groupings are analyzed
for their manpower implications.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
48
Table 27.
Employment by innovation group, 1957, 1967, and outlook for 1975
Employment
Innovation grouping
Number of
occupations
affected
Number
1957
1967
Average annual
percent change
Estimated
1975
1957-67
1967-75
T o ta l....................................................................................................................
128
986,001
610,191
538,900
-1 .9
-1 .6
Redieselization..............................................................................................................
Improved cars...............................................................................................................
Facility relocation and im provements...................................................................
Unit trains and piggyback 1......................................................................................
Automatic classification yards.................................................................................
Computers......................................................................................................................
Centralized traffic control..........................................................................................
Detectors, microwave, and automatic car identification.................................
Maintenance of w a y ....................................................................................................
Passenger service changes and improvements..................................................
All other..........................................................................................................................
16
10
5
9
10
8
10
5
17
15
32
147,941
110,845
16,543
78,033
66,428
6,757
66,000
51,000
3,900
-6 .2
-5 .0
-8 .6
-2 .1
-3 .3
-6 .6
127,233
137,804
48,880
21,924
151,453
60,964
162,414
90,173
95,713
29,257
13,764
76,546
30,385
123,135
85,000
93,000
26,000
10,000
72,000
17,700
116,000
-3 .4
-3 .6
-5 .0
-4 .6
-6 .6
-6 .7
-2 .7
-0 .7
-0 .4
-1 .5
-3 .9
-0 .8
-6 .5
- .7
1Occupational categories whose employment was affected by the introduction of this
innovation, are included in the above three changes because they had a greater impact
on employment.
are less than 40 percent of those for diesels of the
first series.
In 1975, manpower requirements in these 16 cat
egories of jobs affected will be substantially lower
due to expected diffusion of second generation die
sels. M an-hour requirements for diesel maintenance
in these 16 occupations will be reduced, although
workers in these occupations will also be required to
work on other equipment, both rolling stock and
stationary. It is estimated that employment in the 16
occupations will be reduced by about 12,000 jobs,
and will total 66,000 in 1975.
SOURCE: Interstate Commerce Commission, BLS.
Improved cars
In 1967, there were 66,428 employees working in
10 occupations that had been significantly affected
by changes in the design and construction of new
railroad cars. In addition, the almost complete dis
appearance of less-than-carload freight traffic also
accounted for employment declines in most of these
occupations. The 1967 employment in these occupa
tions is 40 percent below the 1957 level. The aver
age annual decline in employment for the group was
5.0 percent, slightly above the 4.7 percent average
Table 28.' Employment and occupational changes related to redieselization, 1957-67
Employment
Occupations
(ICC classification numbers)
1957
1967
Average annual
percen change,
1957-67
Number
Percent
Number
Percent
T o ta l............................................................................................................................................
147,941
100.0
78,033
100.0
General, assistant general, and department foremen (5 0 )....................................................
General and assistant general foremen (stores) ( 5 1 ) ..............................................................
Equipment, shop, electrical, material and supplies inspectors (5 2 )...................................
Gang foremen and gang leaders (skilled labor) ( 5 3 ) ..............................................................
Blacksmiths (5 4 )..................................................................................................................................
Boilermakers (5 5 ).....................................................
Electrical workers (A) ( 5 8 ) ..............................................................................................................
Machinists (6 1 )......................................................................................
....................
Molders ( 6 2 ) .....................................................................................................................................
Sheet-metal workers ( 6 3 ) ....................
Skilled trades helpers (M . of E. and stores) ( 6 4 ) ....................................................................
Helper apprentices (M. of E. and stores) (6 5 )...........................................................................
Regular apprentices (M . of E. and stores) ( 6 6 ) ........................................................................
Gang foremen (shops, enginehouses, and power plants) (6 8 ).............................................
Classified laborers (shops, enginehouses, and power plants) (7 0 ).....................................
General laborers (shops, enginehouses, and power plants) (7 1 )........................................
7,762
295
1,388
7,389
2,963
3,558
15,199
29,977
163
8,854
37,002
1,023
6,090
646
11,302
14,330
5 .2
.2
.9
5 .0
2 .0
2 .4
10.3
2 0.3
.1
6 .0
2 5.0
.7
4.1
.4
7 .6
9.7
6,231
207
804
5,454
1,539
1,681
10,983
18,612
39
5,800
9,752
215
3,553
329
5,490
7,344
8 .0
.3
1.0
7 .0
2 .0
2 .2
14.1
23.9
.1
7 .4
12.5
.3
4 .6
.4
7 .0
9 .4
SOURCE: Interstate Commerce Commission, BLS.
-
6 .2
- 2 .2
- 3 .5
- 5.3
- 3 .0
- 6 .4
- 7 .2
- 3 .2
- 4 .7
-1 3 .3
- 4.1
-1 2 .5
-1 4 .5
- 5 .2
- 6 .5
- 7 .0
- 6 .5
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
Table 29. Estimated maintenance man-hours for selected
diesel locomotive series1
First generation
Second generation
Work performed
Series 1
introduced
1941
Series 2
introduced
1947
1,301
Series 3
introduced
1961
Series 4
introduced
1965
Total........................................
1,541
ICC Inspection man-hours
(an n u a l)..........................................
Scheduled Maintenance
(an n u a l)..........................................
270
270
270
270
1,271
1,031
278
299
Total Maintenance & ICC In
spection Man-hours for
4-year cycle...................................
Average annual unit m an-hours..
7,283
1,820
6,154
1,538
2,619
655
2,286
572
548
499
1 Excludes truck maintenance man-hours which amount to about 1!4 man-hours per
1,000 unit miles. In 1966, the average daily mileage for freight locomotive units was 232,
according to the Association of American Railroads.
49
are responsible for the maintenance of freight and
passenger cars, have also been reduced in numbers,
but their average rate of decline has been less rapid
than for the industry as a whole. Their employment
has been affected by the increasing use of large size
freight cars. Also, modern freight cars are con
structed of lighter weight, more durable materials
and use improved bearings— factors that contribute
to reduced car maintenance requirements.
In 1975, overall employment in this group of oc
cupations will be about one-fourth lower than in
1967 and may total 51,000 workers. This conclu
sion assumes a continuation of recent trends in em
ployment among carmen, truckers and callers, load
ers, scalers, sealers, and perishable-freight inspectors
who, together, accounted for 84 percent of the
employment in this group of occupations in 1967.
SOURCE: General Motors Electromotive Division.
for all occupations in the industry’s class I railroads.
Table 30 shows the 10 occupations that comprise
the group and employment changes in them since
1957.
Among those occupations with the greatest rates
of decline were truckers (ICC 92) and callers, load
ers, scalers, sealers, and perishable-freight inspectors
(ICC 9 1 ). Employment in these two occupations
was substantially affected by changes in the design of
railroad cars that permitted the use of more mecha
nized loading equipment. In 1957, workers in these
occupations accounted for about 20 percent of the
employment associated with the loading of freight
cars; by 1967, the proportion had declined to less
than 10 percent. Carmen (ICC 56 and 5 7 ), who
Table 30.
Shop facilities: relocation and improvements
In 1967, there were 6,757 employees working in
five occupations that had been significantly affected
by facility relocation and improvements; in 1957,
employment in these occupations had totaled 16,543
workers. The average annual decline in employment
for the group was 8.6 percent, substantially higher
than the class I railroad industry average rate of 4.7
percent. Table 31 shows the occupations that com
prise the group and employment changes since 1957.
This innovation grouping includes technological
changes that have had a very significant impact on
employment. It excludes automatic classification
yards, but covers improvements within maintenance
Employment and occupational changes related to improved cars, 1957-67
Employment
Occupations
(ICC classification numbers)
Average annual
percent change,
1957-67
1967
1957
Number
T o t a l...........................................................................................................................................
Motor vehicle and motor car operators (2 4 )...............................................................................
Carmen (A and B) ( 5 6 ) .....................................................................................................................
Carmen (C and D) ( 5 7 ) ......................................................................................................................
General foremen (freight stations, warehouses, grain elevators and docks) ( 8 8 ) .........
Assistant general foremen (freight stations, warehouses, grain elevators, and
docks) ( 8 9 ) .........................................................................................................................................
Gang foremen (freight stations, warehouse, grain elevators and dock labor) ( 9 0 )___
Callers, loaders, scalers, sealers, and perishable-freight inspectors (9 1 )........................
Truckers (stations, warehouses, and platforms) (9 2 ).............................................................
Laborers (coal and ore docks and grain elevators) ( 9 3 ) ........................................................
Common laborers (stations, warehouses, platforms, and grain elevators) (9 4 ).............
SOURCE: Interstate Commerce Commission, BLS.
Percent
Number
Percent
110,845
100.0
66,428
100.0
-
5 .0
6,453
16,434
56,107
362
5 .8
14.8
50.6
.3
5,745
12,436
37,142
187
8 .6
18.7
55.9
.3
-
1.2
2 .7
4 .0
6 .4
194
2,647
12,099
10,425
1,620
4,504
.2
2 .4
10.9
9 .4
1.5
4.1
89
1,208
3,675
2,499
760
2,687
.1
1.8
5.5
3 .8
1.1
4 .0
- 7 .5
- 7 .6
-1 1 .3
-1 3 .3
- 7 .3
- 5 .0
50
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
Table 31.
Employment and occupational changes related to facility relocation and improvements, 1957-67
Employment
Occupations
(ICC classification numbers)
1957
1967
Average annual
percent change
1957-67
Number
Percent
Number
Percent
T o ta l....................................................................................................................................................................
16,543
100.0
6,757
100.0
-8 .6
Electrical workers (B) ( 5 9 ) .......................................................................................................................................
Electrical workers (C) ( 6 0 ) .......................................................................................................................................
General laborers (stores and ice reclamation, and timber-treating plants) (7 2 )...................................
Stationary engineers (steam) ( 7 3 ) .........................................................................................................................
Stationary firemen, oilers, coal passers, and water tenders ( 7 4 ) ................................................................
1,998
397
11,202
1,383
1,563
12.1
2 .4
67.7
8 .4
9 .4
1,221
200
4,211
646
479
18.1
3 .0
62.3
9 .6
7.1
-4 .8
-6 .6
-9 .3
-7 .3
-1 1 .2
SOURCE: Interstate Commerce Commission, BLS.
facilities and in adjacent service operations. Employ
ment in each of the occupations affected by facility
relocation and improvements declined more rapidly
than the industry average. Two affected occupations
— general laborer (ICC 72) and stationary firemen
(ICC 7 4 )— were among those that led the industry
in terms of average annual rates of decline in em
ployment.
First in importance in reducing labor require
ments has been consolidation of maintenance facili
ties stemming largely from the widespread industry
adoption of the diesel engine. The development of
more efficient boilers and controls has also had an
adverse impact on the employment levels of station
ary engineers and their helpers. Other technological
improvements have affected employment of labor
ers: wheel maintenance is now performed by sophis
ticated machines; large vacuum units are being used
to clean car interiors; and mechanized washing facil
ities are available for the exterior cleaning of cars
and locomotives.
Altogether, employment in these five occupations
in 1967 was 59 percent below the number employed
in 1957. Although facility consolidation is an indus
try practice which has already become widespread,
continuing declines in employment among laborers
is anticipated but at a lower average annual rate
than that of the period, 1957 to 1967. By 1975, it
is likely that overall employment in this group of
occupations will decline further to 3,900 workers,
largely because of employment trends in the general
laborer category (ICC 72).
Unit trains and piggyback traffic
Altogether, employment in 9 ICC occupational
categories has been affected by the development of
unit trains and piggyback traffic; in 8 of these occu
pational categories (m otor vehicle and m otor car
operators, ICC 24, is the exception), the adoption of
these innovations has led to greater-than-average de
clines in employment between 1957 and 1967. Fol
lowing is a list of these occupational categories, each
of which has already been discussed under the ap
propriate technological development that has had
the greatest impact on its employment.
ICC Line
24
60
88
89
90
91
92
93
94
Occupational Category
Motor vehicle and motor car operators
Electrical workers (C )
General foremen (freight stations, warehouses,
grain elevators, and docks)
Assistant general foremen (freight stations, ware
houses, grain elevators, and docks)
Gang foremen (freight station, warehouses, grain
elevators, and dock labor)
Callers, loaders, scalers, sealers, and perishable
freight inspectors
Truckers (stations, warehouses, and platforms)
Laborers (coal and ore docks and grain eleva
tors)
Common laborers (stations, warehouses, plat
forms, and grain elevators)
In both unit and piggyback trains, manpower sav
ings have resulted from the reduction in loading, un
loading, and switching operations. Unit trains bypass
switchyards completey and piggyback trains are un
loaded by simply driving the trailers away from the
switchyards. Some low-skilled railroad jobs associ
ated with loading, unloading, and switching opera
tions have been diverted to other industries as a re
sult of these innovations. However, new jobs have
also been created in the railroad industry. These job
titles include those of the director of piggyback pric
ing or marketing, his assistants, and his related cleri
cal staff. All of these new jobs are included among
professional and clerical (white collar) occupations
while the occupations that have declined in employ
ment have been blue-collar ones.
51
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
Yardworker directs the loading of a piggyback trailer onto
a waiting flatcar.
Automatic classification yards
In 1967, there were 90,173 railroad employees
working in 10 occupational categories (about 14
percent of all class I railroad workers) that had
been significantly affected by the establishment of
automatic classification yards. This employment rep
resents a total drop of 29 percent since 1957, when
this innovation was still relatively new. The average
annual decline in employment for the group of oc
cupations was 3.4 percent, significantly less than the
4.7 percent average for the industry’s class I rail
roads. Table 32 shows the occupations that com
prise the group and employment changes since
1957.
Among those occupations with the greatest rates
of decline in employment were yard firemen and
Table 32.
helpers (ICC 128) and switchtenders (ICC 107).
Employment for yard firemen and helpers also de
clined because of dieselization and the subsequent
compulsory arbitration award called for by the Pres
idential Railroad Commission established in 1963.
Both switchtenders and yard firemen and helpers
were among the 21 occupational categories in the
industry (out of 128) that declined the most be
tween 1957 and 1967.
New technology associated with the establishment
of automatic classification yards has changed the job
content in several occupations. Yardmasters and
their assistants (ICC 105 and 106), for example, now
rely heavily on computers for accurate information
about the location and scheduling of cars—when they
are due, where each is bound, and which are being
switched. Data available to the yardmaster through
computer printouts allow him to supervise the move
ment of scheduled inbound and outbound traffic.
Also, the yardmaster relies on the use of radio trans
mission to provide current information to yard per
sonnel. In automatic classification yards, switches are
no longer thrown manually by switch tenders; in
stead, retarder and remote control switch operators,
located in towers overlooking freight yard operations,
switch cars by flicking switches located on a con
sole. The duties of the yard brakemen (ICC 120)
have also been modified somewhat. In some yards,
they still manually uncouple cars and signal to the
switchtender when track switches must be thrown;
in others, regulation of car speed has been taken
over by computers which control mechanical re
tarders. Also, the brakeman uses radio to communi
cate with the yard conductor from whom he receives
his instructions.
The 1975 employment outlook for workers in this
Employment and occupational changes related to use of automatic classification yards, 1957-67
Employment
Occupations
(ICC classification numbers)
1967
1957
Average annual
percent change
1957-67
Number
Percent
Number
Percent
T o ta l..................................................................................................................................................................
127,233
1 0 0 .0
90,173
1 0 0 .0
-3 .4
Yardmasters (1 0 5 ).....................................................................................................................................................
Assistant yardmasters (1 0 6 )..................................................................................................................................
Switchtenders (1 0 7 )..................................................................................................................................................
Outside hostlers (1 0 8 ).............................................................................................................................................
Inside hostlers (1 0 9 )................................................................................................................................................
Outside hostlers helpers (1 1 0 )..............................................................................................................................
Yard conductors and yard foremen (1 1 9 )..........................................................................................................
Yard brakemen and yard helpers (1 2 0 ).............................................................................................................
Yard engineers and motormen (1 2 4 )..................................................................................................................
Yard firemen and helpers (1 2 8 )...........................................................................................................................
5,129
1,213
2,655
1,767
2,319
1,116
21,411
53,293
18,170
20,160
4 .0
4,803
5 .3
688
.8
1 .1
-.7
-5 .5
-9 .7
-2 .6
-5 .8
-3 .8
-1 .3
-3 .2
-1 .6
-9 .5
SOURCE: Interstate Commerce Commission, BLS.
1.0
2 .1
1.4
1 .8
.9
16.8
41.9
14.3
15.8
950
1,352
1,272
763
18,729
38,590
15,579
7,447
1.5
1.4
.8
2 0 .8
4 2.8
17.3
8 .3
52
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
group of occupations related to automatic classifica
tion yards is one of relative stability. Current em
ployment (1967) is likely to diminish only slightly
by 1975, accounting for about 85,000 workers in
this group of occupations. This slight change in
overall employment is related to the diffusion of
small automatic classification yards and the con
struction of a few more large ones.
Computers
In 1967 there were 95,713 employees working in
8 occupations that had been significantly affected by
computers. This employment represents a drop of
31 percent since 1957. The average annual decline
in employment for the group of occupations be
tween 1957 and 1967 was 3.6 percent, compared to
a 4.7 percent decline in all class I railroad employ
ment during the same period. Table 33 shows the
occupations that comprise the group and employ
ment changes since 1957.
Among the occupations with the greatest rates of
decline in employment were clerks (ICC 7), the tel
ephone switchboard operators and office assistants
(ICC 14), and messenger and office boys (ICC
15). Employment in the last two occupations de
clined at a much greater average annual rate than
overall employment of occupations related to the
utilization of computers. In fact, their numbers have
been so depleted that the further introduction of
new telephone switching techniques and greater use
of computer terminals for information dissemination
is not likely to have much effect on employment lev
els in these occupations. However, the major groups
of clerks (ICC 6 and 7) may be reduced somewhat
further as additional computer systems are modified
to permit direct shipper and consignee access to car
Table 33.
location files, rather than relying on clerks to query
the system for these users.
The introduction of computers in the railroad in
dustry provides a good example of the employment
and occupational changes associated with technolog
ical change. In this industry, as in others, the impact
of the growing use of computer technology has been
to reduce employment most heavily in occupations
requiring lower levels of skill and in jobs that are
repetitive. At the same time, higher level jobs have
been growing in importance, increasing their relative
share of overall employment. For example, in the
railroad industry, employment among professional
and subprofessional assistants (ICC 3), chief clerks
(ICC 4 and ICC 5) and clerks and clerical special
ists (ICC 6) declined at a rate substantially below
the average for class I railroad employment between
1957 and 1967. At the same time, employment in
these occupational categories increased as a propor
tion of all workers employed in occupations associ
ated with introduction of computers.
The introduction of computers has also meant the
introduction of job titles previously unheard of in
the industry.2 These new job titles are shown in
9
table 34.
In 1975, employment in this group of occupations
may total 93,000, only slightly below the 1967 level
shown on table 33. This estimate takes into consid
eration the increasing requirement for high-level
white-collar workers (noted above) and is based
29
These job titles were reported to the Interstate Com
merce Commission under its 128 line reporting system.
Since these are new job titles, they were subsumed into the
existing classification. The greatest number of new job titles
were reported in categories 1-8 (mainly in occupations re
lated to computers) while the remainder were distributed
among the other occupational categories.
Employment and occupational changes related to use of computers, 1957-67
Employment
Occupations
(ICC classification num bers)
1957
Average annual
percent change
1957-67
1967
Number
Percent
Number
Percent
...............................................................................................
137,804
1 0 0 .0
95,713
1 0 0 .0
-3 .6
6 .0
2 .0
7,373
2,342
9,407
9,132
58,562
6,026
1,775
1,096
7 .7
2 .4
9 .8
9 .5
61.2
6 .3
1.9
Messengers and office boys (1 5 )..........................................................................................................................
8,325
2,769
11,416
11,265
90.013
8,233
3,434
2,349
-1 .2
-1 .7
-2 .0
-2 .1
-4 .2
-3 .1
-6 .4
-7 .3
T o t a l...
.
SOURCE: Interstate Commerce Commission, BLS.
8 .3
8 .2
65.3
6 .0
2 .5
1.7
1 .1
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
53
Table 34. New railroad job titles associated with use of computers
ICC Line and occupational category
New job titles reported
Division officers, assistants and staff assistants (ICC 2 ) ........................
Supervisor of Computer Centers; Supervisor of Data Coordination; Transportation Analyst
Professional and subprofessional assistants (IC C )...................................
Assistant Computer Engineer; Assistant Manager, Applied Reseirch; Assistant Quality Control Engineer;
Communication Valuation Engineer; Electronic Engineer.
Supervisory or chief clerks (m ajor departments) (ICC 4 ) .....................
Assistant Chief Cost Analyst; Assistant Cost Analyst; Auditor; Machine Accounting; Manager, Electronic
Data Processing Center; Supervisor, Methods and Cost Control Engineers Systems.
Chief clerks (minor departm ents), assistant chief clerks and super
vising cashiers (ICC 5 ).
Chairman, EDPM Committee; Accounting Chief of Keypunch; Chief System Analyst; Tape Room Super
visor.
Clerks and clerical specialists (A) (ICC 6 ) ..................................................
Automation Analyst; Cost and Methods Engineer; Junior Economist; Methods Analyst; System and Methods
Analyst.
Clerks (B and C) (ICC 7 ) ....................................................................................
Manifest Clerk IBM Operator; Tape Librarian.
Mechanical Device Operator (Office) (ICC 8 ) .............................................
IBM Clerk; Accounting Machine Operator; Alpha-Numeric Keypunch Operator; Assistant Computer Programer; Assistant IBM Operator; Clerk, Machine Operator; Lead Computer Programmer; Console Operator.
SOURCE: Interstate Commerce Commission, BLS.
upon employment and occupational trends found in
a few railroad companies that have led the industry
in computer applications.
Centralized traffic control
In 1967, there were 29,257 employees working in
10 occupational categories that had been significantly
affected by the installation of centralized traffic con
trol. This employment represents a drop of 39 per
cent since 1957. The average annual decline in em
ployment for the group between 1957 and 1967 was
5.0 percent, compared with a decline of 4.7 percent
among all class I railroad workers. During this pe
riod, the number of miles of track under centralized
traffic control increased from 32,000 in 1957, to
46.000 in 1967. Table 35 shows the 10 occupa
tional categories included in the group and employ
ment changes since 1957.
Among those occupations with the greatest rates
of decline in employment were assistant signalmen
and assistant signal maintainers (ICC 48), signal
men and signal maintainer helpers (ICC 49),
clerk-telegraphers and clerk-telephoners (ICC 82),
telegraphers, telephoners and towermen (ICC 83),
crossing and bridge flagmen and gatemen (ICC
103) and train dispatchers (ICC 76). On the other
hand, in two occupational categories—general and
assistant general foreman and inspectors (ICC 44)
and gang ^foremen, signal and telegraph skilled
trades labor (ICC 45)—employment declines were
slight between 1957 and 1967.
Telegraphers and telephoners, in the past, had re
ceived train orders from dispatchers while towermen
operated the controls for automatic and manual block
signaling devices. With the adoption of CTC, many
towermen, telegraphers and telephoners were shifted
from work locations along the line of track to work
stations where, with the use of a console, several
stretches of track could be controlled. The effect on
employment in these occupations can be illustrated
from the example of one railroad which installed
approximately 150 miles of track regulated by CTC.
This change eliminated the need for 6 towers along
the right of way and the 24 signal operators (tower
men) who were employed in these towers—one op
erator per tower for each of 3 shifts plus one relief
man at each tower.3
0
Signalmen and signal maintainers are skilled
workers who can readily find employment in other
industries. Employment in this occupational cate
gory declined relatively more slowly than overall in
dustry employment. Competition from other indus
tries for men with these skills has been a factor in
the decline of employment. Attrition of this occupa
tional category also accounts for the recent upturn
in employment in the related helper and apprentice
categories (ICC 48, 49) which had a substantial net
decline between 1957 and 1967.
Clerk-telegraphers and telephoners (ICC 82)
convey train orders received from dispatchers to
various destinations along the right-of-way. With the
adoption of CTC, this activity is becoming less com
mon, reducing the need for some clerk-telegraphers
and telephoners who have been transferred to other
clerical duties such as car distribution. In addition,
the transmission of messages using Morse Code has
been virtually superseded by voice and facsimile
30
R a i l w a y A g e , June 19, 1961. Also, Interview, Balti
more and Ohio Railroad, May 25, 1966.
54
RAILROAD TECHNOLOGY AND MANPOWER IN THE 19 70’s
Table 35.
Employment and occupational changes related to centralized traffic control, 1957-67
Employment
Occupations
(ICC classification numbers)
1957
1967
Average annual
percent change
1957-67
Number
Percent
Number
Percent
T o ta l..................................................................................................................................................................
48,880
1 0 0 .0
29,257
1 0 0 .0
-5 .0
General and assistant general foremen, and inspectors (signal, telegraph, and electrical transmission) ( 4 4 ) ..........................................................................................................................................................
Gang foremen (signal and telegraph skilled trades labor) (4 5 ).................................................................
Signalmen and signal maintainers ( 4 6 ) ..............................................................................................................
Assistant signalmen and assistant signal maintainers ( 4 8 ) ........................................................................
Signalman and signal maintainer helpers ( 4 9 ) ................................................................................................
Chief train dispatchers ( 7 5 ) ...................................................................................................................................
Train dispatchers ( 7 6 ) ..............................................................................................................................................
Clerk-telegraphers and clerk-telephoners ( 8 2 ) ...............................................................................................
Telegraphers, telephoners, and towermen ( 8 3 ) ..............................................................................................
Crossing and bridge flagmen and gatemen (1 0 3 )...........................................................................................
1,585
1,684
8,664
2,254
2,291
1,086
2,949
8,123
13,261
6,983
3 .2
3 .5
17.7
4 .6
4 .7
1,520
1,479
6,786
1,166
833
894
2,219
4,440
8,114
1,806
5 .2
5.1
23.2
4 .0
-.4
-1 .3
-2 .4
-6 .4
-9 .6
-2 .0
-2 .8
-5 .8
-4 .8
-1 2 .7
2 .2
6 .0
16.6
27.1
14.3
2 .8
3.1
7 .6
15.2
27.7
6 .2
SOURCE: Interstate Commerce Commission, BLS.
transmission—a factor which has contributed greatly
to the above-average rate of decline in this occupa
tional category.
Employment among crossing and bridge flagmen
and gatemen (ICC 103)—an unskilled occupation
—has declined rapidly as a result of the installation
of automatically actuated signals. Train dispatchers
(ICC 75, 76) have had an employment decline sub
stantially less than that of total employment in the
industry. They now have charge of CTC consoles or
may operate them and have wide responsibility for
safe train movement.
By 1975, total employment in the 10 occupations
associated with the installation of centralized traffic
control may decline to 26,000 at a rate considerably
slower than between 1957 and 1967. The occupa
tional composition may also change: crossing and
bridge flagmen and gatemen may disappear and em
ployment levels may continue to drop among teleg
raphers, telephoners, and towermen; clerk-telegra
phers and telephoners; and among train dispatchers.
Table 36.
In the case of train dispatchers, moreover, some of
the reduction in employment may result from CTC’s
becoming more widely used on a regional basis. An
upturn in employment is likely among both assistant
signalmen and assistant signal maintainers and also
signalmen and signal maintainer helpers because of
the growing need to train skilled signalmen and sig
nal maintainers who are in short supply.
Detectors, microwave and automatic
car identification
In 1967, there were 13,764 employees working in
five occupations that had been significantly affected
by the introduction of such innovations as detectors,
microwave, and automatic car identification. This
employment represents a drop of 27 percent since
1957. Between 1957—when the Federal Communi
cations Commission first assigned frequencies to the
railroads—and 1966, microwave grew to more than
22,000 route miles. The average annual decline in
Employment and occupational changes related to detectors, microwave, and automatic car identification, 1957-67
Employment
Occupations
(ICC classification numbers)
1957
1967
Average annual
percent change
1957-67
Number
Percent
Number
Percent
T o ta l....................................................................................................................................................................
21,924
1 0 0 .0
13,764
1 0 0 .0
-4 .6
Traveling auditors or accountants (1 3 ).................................................................................................................
Linemen and groundmen ( 4 7 ) .................................................................................................................................
Station agents (sm aller stations— nontelegraphers) ( 7 9 ) ...............................................................................
Station agents (telegraphers and telephoners) ( 8 0 ) ........................................................................................
Chief telegraphers and telephoners or wire chiefs (8 1 ) .................................................................................
1,183
2,835
4,119
12,660
1,127
5 .4
12.9
18.8
57.7
5.1
811
2,132
2,216
7,553
1,052
5 .9
15.5
16.1
54.9
7 .6
-3 .7
-2 .8
-6 .0
-5 .0
-.7
SOURCE: Interstate Commerce Commission, BLS.
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
employment for the group of occupations between
1957 and 1967 was 4.6 percent, about equal to the
decline of 4.7 percent in total class I railroad em
ployment during the same period. Table 36 shows
the occupations that comprise the group and employ
ment changes since 1957.
Station agents (telegraphers and telephoners—
ICC 80) and station agents (smaller stations—non
telegraphers—ICC 79) relay train orders and
messages and may have other duties such as ticket
sales, passenger information, and baggage checking,
depending upon the size of the station. The installa
tion of microwave has been a major reason for
above-average employment declines among station
agents. The increasing use of detectors for determin
ing the condition of journals or roller bearings and
to check for equipment that may be dragging or for
a broken wheel, smoke, high water, and for many
other purposes, has also cut down on the employ
ment of station agents, who formerly visually
checked the train for these conditions. The growth
of centralized traffic control systems, the decrease in
passenger service, the centralizing of freight station
accounting and the loss of less-than-carload traffic,
are among the additional factors that have contrib
uted to the decline in employment in these occupa
tions.
The adoption of microwave-based communication
systems has also contributed to the decline in em
ployment among linemen and groundmen (ICC 47)
largely because of reduced line maintenance and
need for fewer telegraph poles. The growing use of
microwave has had little impact on the employment
of chief telegraphers and telephoners or wire chiefs
(ICC 81); some workers in this occupational cate
gory have, in fact, found the scope of their work ac
tivities broadened to include a new job title—super
visor, communications center.
Employment of traveling auditors or accountants
(ICC 13) has been adversely affected by the adop
tion of microwave which has furnished the capacity
to centralize recordkeeping. Clerks have also suf
fered employment declines because of microwave’s
increased carrying capacity; however, the major im
pact on their employment has resulted from the
widespread adoption of computers.
In 1975, employment in these five occupations
may total about 10,000, down 27 percent from
1967 levels. Should this decline take place, the
downward trend in employment will probably be re
55
flected mainly among linemen and groundmen and
among station agents as microwave becomes more
widely established. The installation of detector de
vices is not likely to have a major impact on the
employment of workers who read such devices rou
tinely as a part of their regular duties. Some record
ers, for example, are tied in directly with central
ized traffic control, while hotbox detectors that are
located at trackside are the responsibility of signal
maintainers and their helpers. In addition, automatic
car identification, as it becomes more operational in
the industry, will mainly affect employment levels of
clerks and office personnel while employment of
traveling auditors or accountants is likely to remain
relatively stable.
Signalman checking out signal strength of a microwave
station.
56
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
Maintenance of way innovations
In 1967, there were 76,546 employees working in
17 occupations that had been significantly affected
by improvements and innovations in maintenance of
way activities. Current employment represents a
drop of 49 percent from 1957. The average annual
decline in employment for the group between 1957
and 1967 was 6.6 percent, compared with a 4.7
percent decline among class I railroad employees.
Table 37 shows the. 17 occupational categories in
cluded in the group and employment changes since
1957.
Ten of the occupations associated with mainte
nance of way changes declined at a faster average
annual rate than did class I railroad employment.
Moreover, four of these 10 occupations were among
the 20 railroad occupations that declined the most
between 1957 and 1967. Altogether, six of the oc
cupational categories with above average employ
ment declines had large concentrations of workers:
section men (ICC 4 2 ); gang or section foremen
(ICC 4 0 ); extra gang men (ICC 4 1 ); bridge and
building carpenters (ICC 3 0 ); bridge and building
gang foremen, skilled labor (ICC 2 9 ); and mainte
nance of way and structures helpers and apprentices
(ICC 3 4 ). As the occupational titles show, both
skilled and unskilled workers were included among
the declining occupational categories. In the case of
skilled workers, the declines have slowed down since
1964 while in the case of unskilled workers, em
ployment declines have continued, although at a
slower rate than in the late 1950’s.
Table 37.
Between 1957 and 1967, employment increases
occurred among workers in three occupational cate
gories related to maintenance of way work: portable
equipment operators (IC C 35) because of the shift
from pick and shovel work to the use of pneumatic
handtools and multipurpose machines; gang foremen
(extra gang and work train laborers, ICC 38) be
cause of the growing reliance upon supervision as
more complex equipment is used to satisfy grade,
curvature and ballast specifications; and gang fore
men (bridge and building, signal and telegraph labor
ers, ICC 39) who are relatively few in number.
The relatively stable occupations associated with
maintenance of way work in the 1957-67 period
were roadmasters, general foremen, and assistants
(ICC 27); masons, bricklayers, plasterers and plumb
ers (ICC 3 3 ); and maintenance of way and scale
inspectors (ICC 28 ).
Total employment in maintenance-of-way activi
ties is difficult to estimate. Much of this kind of
work is performed by workers in low skilled occu
pations whose employment tends to fluctuate with
increases and decreases in maintenance of way ex
penditures, as does employment of the skilled work
ers they assist. According to one expert, estimates of
maintenance requirements of rail installations as
sume an “ average service life for rail of over 100
years” 31 even though many railroad officials be
lieve track life is much shorter. In 1968, record ex
penditures of over $400 million were earmarked for
31
See, “Derailment Problems Tackled by Railroads,” by
Vera Herschberg, J o u r n a l o f C o m m e r c e , Mar. 12, 1969.
Employment and occupational changes related to maintenance of way innovations, 1957-67
Employment
Occupations
(ICC classification numbers)
1957
1967
Average annual
percent change
1957-67
Number
Total ..
...........................................................................................................
Gang foremen (bridge”and building, signal and telegraph laborers) (3 9 )........................................
Gang or section fore~men (4 0 )___ ~ .......................... 7...........................................................................
Extra gang men (4 1 )................................................................................................................................
Section men (42) ................................................................................................................... ................
SOURCE: Interstate Commerce Commission, BLS.
Percent
Number
Percent
151,453
100.0
76,546
100.0
- 6 .6
3,374
993
3.547
10,464
785
1,858
2,788
5,627
6,897
581
258
2,881
128
16,949
23,087
69,264
1,972
2.2
.7
2.3
6.9
.5
1.2
1.8
3.7
4.6
.4
.2
1.9
.1
11.2
15.2
45.7
1.3
3,206
817
2.278
5,214
404
639
2,726
2,444
8,891
322
74
3,309
149
7,486
13,622
24,227
738
4.2
1.1
3.0
6.8
.5
.8
3.6
3.2
11.6
.4
.1
4.3
.2
9.8
17.8
31.7
- .5
-2 .0
-4 .3
- 6 .7
-6 .5
-1 0 .2
-.2
-8 .0
+ 2 .6
- 5 .7
-1 1 .7
+ 1 .4
+ 1 .5
-7 .8
- 5 .1
-1 0 .0
- 9 .3
1.0
57
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
Men are still an important element in maintenance of way1
activities despite introduction of mechanization.
maintenance of way requirements; this was heralded
by many in the industry as evidence of a new
awareness of the need to stop deferring such mainte
nance work. If current high levels of maintenance of
way expenditures continue, employment in this
group of occupations may drop only slightly to
72,000 by 1975 (about 6 percent below 1967 lev
els). Should this occur, there will be numerous op
portunities for relatively unskilled workers and the
skilled craftsmen they assist— particularly in view of
the high average age and years of service in these
categories.
Passenger service changes
In 1967, there were 30,385 employees working in
15 occupations that had been significantly affected
by changes and improvements in passenger service,
a drop of about 50 percent since 1957. The average
Table 38.
annual decline in employment for the group of oc
cupations between 1957 and 1967 was 6.7 percent,
compared with a decline of 4.7 percent among all
class I railroad workers. Table 38 shows the 15 oc
cupational categories included in the group and em
ployment changes since 1957.
Eleven of the occupations associated with changes
and improvements in passenger service declined at a
faster average annual rate than did class I railroad
employment, as a whole. One of these occupations
— parlor and sleeping car conductor (IC C 100)—
disappeared altogether.
Overall employment in this group of occupations
is likely to continue to decline rapidly, and may
reach 17,700 by 1975. Developments such as the
introduction of the Penn-Central M etroliner and
other high-speed trains that operate in corridors are
not likely to contribute greatly to employment of
workers whose jobs are related to passenger traffic.
These high-speed trains carry traffic that is much
less labor-intensive than the regular passenger train
traffic they offset. Over the long run, should the
Metro concept be extended to other corridors and
account for the bulk of passenger traffic and should
the operation of intercity passenger trains by Amtrak be successful, employment levels may stabilize
or even rise among some workers. These include
coach cleaners (IC C 6 7 ); road passenger engineers
and m otormen (ICC 121); road passenger brakemen and flagmen (ICC 116); train attendants (IC C
101); road passenger conductors (ICC 111); assist
ant road passenger conductors and ticket collectors
(ICC 112).
Employment and occupational changes related to passenger service, 1957-67
Employment
Occupations
(ICC classification numbers)
Average annual
percent change
1957-67
1967
1957
Number
Percent
Number
Percent
60,964
100.0
30,385
100.0
- 6 .7
Coach cleaners (6 7 )......................................................................................................................................
8,093
Baggage agents and assistants (8 6 )..........................................................................................................
Baggage, parcel room, and station attendants (87).................................................................................
Stewards, restaurant & lodging-house managers, & dining-car supervisors (9 5 )..............................
Chefs and cooks (restaurants or dining cars)” (9 6 ).......... ............... .......................................................
Waiters, camp cooks, kitchen helpers,” etc. (9 7 )......................................................................................
Parlor and sleeping car conductor (100)...................................................................................................
Train attendants ( fO l) ....................................................... ......................................................................
364
8,208
1,203
3,060
7,028
6
3,403
5,341
2,851
2,798
6,269
6,434
5,811
13.3
.2
.6
13.5
2.0
5.0
11.5
.0
5.6
8.8
4.7
4.6
10.1
10.6
9.5
3,464
72
151
4,425
507
1,232
2,995
0
2,111
2,926
1,975
1,183
2,963
3,489
2,892
11.4
.2
.5
14.6
1.7
4.1
9.9
.0
6.9
9.6
6.5
3.9
9.8
11.5
9.5
- 8 .2
- 2 .7
-8 .4
-6 .0
- 8 .3
- 8 .7
-8 .2
95
Assistant road passenger conductors and ticket collectors (112)..........................................................
Road passenger baggagemen (1 1 5 )...
.........................................................................................
Road passenger brakeinen and flagmen (116) .....................................................................................
Road passenger and engineers and motormen (121)..............................................................................
Road passenger firemen” and helpers (125)..............................................................................................
SOURCE: Interstate Commerce Commission, BLS.
-4 .7
-5 .8
-3 .6
-8 .3
-7 .2
-5 .9
-6 .7
58
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
Other employment and occupational changes not
related to a specific innovation
Thirty-two additional occupational categories (out
of the 128 classified for reporting purposes by the
IC C ) were also affected by technological or proce
dural changes. However, shifts in their employment
could not be readily traced to a single innovation or
to a combination of technological changes, as with
all other occupations. Altogether, these 32 occupa
tions accounted for 123,135 workers in 1967, com
pared with 162,414 in 1957. As a group, they de
clined at an average annual rate of 2.7 percent
between 1957 and 1967, considerably slower than
total class I railroad employment. (See table 39).
Employment in 11 of the 32 occupations
amounted to 99,829 workers in 1967, compared to
123,729 workers in 1957, a decline of 2.2 percent a
year during the period 1957-67. Each of the 11 oc
cupations accounted for at least 5,000 employees in
1967 and as a group accounted for 81 percent of all
workers in the residual group.
Employment of road freight firemen and helpers
(ICC 126) declined at an average annual rate of
7.2 percent between 1957 and 1967, sustaining the
most rapid rate of decline of any of these 11 occu
pational categories. The main reason for this decline
was the initial changeover from steam to diesel en
gines, which resulted in the elimination of the
“firing” job of the fireman. Subsequently, the arbi
tration award of 1963 permitted the railroads to
start cutting employment in this category. In view of
the strong bid by unions to reinstate firemen since
expiration of the award, it is impossible to project
employment for this occupation.
' Table 39.
Employment of stenographers and typists (ICC
10) has declined at an average annual rate of 5.2
percent during the 1957-67 period. In addition to
their regular work, stenographers and typists also
perform routine clerical work which has been taken
over by computers or affected by changes in com
munications. This portion of their work is likely to
be further diminished as more railroads develop
total information systems.
Each of the occupational categories discussed
below declined well below the average annual
change in class I railroad employment between 1957
and 1967. Also, employment in some of these occu
pations began to rise in the latter part of the period.
These included road freight brakemen and flagmen,
local and way freight (ICC 118); rail freight engi
neers and motormen, through freight (ICC 122);
and road freight conductors, through freight (ICC
113).
Employment of traffic and various other agents
and investigators (IC C 19) declined at an average
annual rate of 2.8 percent between 1957 and 1967.
This decline is likely to continue to 1975 since
many of these workers are performing tasks related
to passenger traffic.
Employment of road freight brakemen and flag
men in local and way freight service (IC C 118) has
declined at an average annual rate of 1.5 percent
for the' 1957-67 period. Despite a slight upturn in
employment starting in 1965, a decrease in employ
ment by 1975 is likely to result from the growing
use of newly developed automatic coupler devices
which eliminate the need for m anual air hose
connections.
Employment and occupational changes, not related to specific innovations, 1957-67
Employment
Occupations
(ICC classification numbers)
1957
1967
Average annual
percent change
1957-67
Number
Percent
Number
T o ta l................................................................................................................................................
162,414
100.0
123,135
100.0 t
-2 .7
Executives, general officers, and assistants ( 1 )...................................................................................
Division officers, assistants, and staff assistants ( 2 )...........................................................................
Stenographers and typists (1 0 )..............................................................................................................
Traffic and various other agents, inspectors, and investigators (1 9 )................................................
Road freight conductors (through freight) (113)............ 7...........
..................................................
Road freight conductors (local in d way freight) (114) .....................................................................
Road freight brakemen and flagmen (through freight) (117)............................................................
Road freight brakemen and flagmen (local Ind way freight) (118)..................................................
Road freight engineers and motormen (through freight)~(122)........................................................
Road freight engineers and motormen (local and way freight) (123)..............................................
Road freight firemen and helpers (through freight) (126)7. ..............................................................
A ll other occupations (21 occupations) . 7 . ___7 . . . . . . . . . f ...............................................................
7,276
8,988
12,944
10,681
9,286
6,244
23,282
14,712
11(456
6,478
12,382
38,685
4.5
5.5
8.0
6.6
5.7
3.8
14.3
9.1
7.1
4.0
7.6
23.8
6,595
8,906
7,578
8,039
8,303
6,085
19,591
12(616
9,941
6,333
5,842
23,306
5.4
7.2
6.2
6.5
6.7
4.9
15.9
10.2
8.1
5.1
4.7
18.9
-1 .0
-.1
- 5 .2
-2 .8
-1 .1
- .3
- 1 .1
-1 .5
-1 .4
-.2
-7 .2
-4 .9
SOURCE: Interstate Commerce Commission, BLS.
Percent
EMPLOYMENT OUTLOOK AND TECHNOLOGICAL CHANGE
Employment of road freight engineers and motormen, through freight (ICC 122), declined at an av
erage annual rate of 1.4 percent between 1957 and
1967. Although employment in the group is allied
closely with freight traffic, which has been rising
since 1960, this link will become less direct with the
increasing use of more powerful locomotives to pull
longer and heavier trains. Thus, despite increased
freight traffic, employment in this occupational cate
gory in 1975 is expected to be about the same as
today.
Road freight conductors’ employment on through
freight trains (ICC 113) declined at an average an
nual rate of 1.1 percent between 1957 and 1967. As
in the case of road freight engineers and motormen,
through freight (IC C 122) noted above, employ
ment in this occupational category is closely related
to traffic. Like road freight engineers and motormen,
their employment is likely to be much the same in
1975 as now, despite increased traffic.
Employment of road freight brakemen and flag
men (ICC 117) declined at the same average an
nual rate as the conductors’— 1.1 percent— between
1957 and 1967. Like that in the two occupations
discussed above, employment of workers in this oc
cupational category is also affected by length of
trains and amount of traffic carried. Current dis
putes concerning the manning scale for freight make
employment estimates difficult. However, should the
United Transportation Union (U T U ), which repre
sents many of these employees, continue to be suc
cessful in obtaining one conductor and two
brakemen crews for most trains and should the ex
pected rise in overall freight traffic materialize, a
slight increase in the number of these employees by
1975 may be in prospect.
Employment levels in the executive, general
59
officer, and assistant category (ICC 1) declined at
an average annual rate of 1.0 {percent between 1957
and 1967. Many new jobs related to changed tech
nology or innovations in marketing have been re
ported in this category in recent years. These in
clude assistant manager, property taxes; assistant
manager, rail-highway sales; director of piggyback
pricing; and director of computer systems. The dif
fusion and adoption of various new technologies and
marketing methods points to a growing need for the
higher level manpower represented in this occupa
tional category. There appears to be every indica
tion that the slight decline in employment noted in
the 1957-67 period will be reversed by 1975.
In local and way freight service, employment of
road freight conductors (ICC 114) and road freight
engineers and motormen (IC C 123) declined at av
erage annual rates of 0.3 percent and 0.2 percent
respectively, during the 1957-67 period. Each cate
gory increased substantially as freight increased in
the 1960’s and because of this factor, it is likely
that their employment will increase still further in
the 1970’s.
Employment of division officers, assistants, and
staff assistants (ICC 2) declined during the
1957-67 period, at an average annual rate of 0.1
percent. The average annual rate of decline might
have been higher, however, except for the fact that
employment in this group benefited from the adop
tion of new technology.32 Since 1964, employment
in this category has increased by almost 1,000 per
sons; in all likelihood, a steady growth in employ
ment may be expected through 1975.
32
See the section dealing with employment effects of
computers which discusses new job titles created in this re
porting category.
Chapter VI. Adjustments to Technological Change,
Working Conditions and Earnings
Widespread technological change is responsible
for changes in working conditions and industrial re
lations and has contributed to worker adjustment
problems. This chapter examines these innovations
from the viewpoint of their impact on working con
ditions and of employee adjustments to technologi
cal change, largely as expressed in collective bar
gaining agreements.
Collective bargaining and adjustments to
technological change
Although collective bargaining provisions specif
ically relating to technological change have be
come prominent in the 1960’s in the railroad indus
try, they follow the pattern of a contract— the
“Agreement of May 1936, Washington, D.C.”—
originally designed to protect employees of merged
carriers.33 The nationwide pact, signed by most of
the m ajor U.S. railroads and all the standard rail
road labor unions represented by the Railway Labor
Executive Association, provided comprehensive pro
tection against loss of job or earnings resulting from
mergers and consolidations. It included provisions
for advance notice of a merger; moving expenses
and reimbursement for losses on home sales by relo
cated employees; an allowance which maintained the
former wage rates of downgraded employees for
several years; and, for separated workers, a sever
ance allowance payable over a period of time or as
a lump sum. The “Washington Agreement,” how
ever, did not apply to displacement or job loss
caused by technological changes, or to reorganiza
tion within one railroad; neither did subsequent ICC
regulations. Therefore, as these types of situations
arose and had a greater effect on railroad workers
during the 1950’s and early 1960’s, the growing de
mand for job protection became the subject of
collective bargaining negotiations. Subsequently,
some principles and provisions of the “Washington
Agreement” were applied as well, to meet problems
stemming from technological change, being incorpo
rated into a few nationwide union-management con
tracts. For example, a 1964 nationwide contract
covering some 140,000 nonoperating, shopcraft em
ployees, extended protections such as moving allow
ances, income maintenance provisions and severance
pay.31 Also, in early 1965, a national contract em
bodying job guarantees, limitations on job
subcontracts, and income protection devices was ne
gotiated for about 255,000 nonoperating, nonshopcraft employees.35 In 1970, the first agreement with
such provisions for operating employees was negoti
ated on a pilot basis between the United
Transportation Union and the Illinois Central Rail
road.
Nonoperating railroad employees, totaling about
360,000 people, are organized into about 25 sepa
rate unions. (See appendix V -l).30 A merger in
early 1969 reduced the number of unions covering
operating personnel— about 170,000 workers— from
five to two: The United Transportation Union
(U T U ) and the Brotherhood of Locomotive Engi-
33
See
“Adjusting to Technology on the Railroads,”
November 1969, pp. 36-42.
M o n th ly L a b o r R e v i e w ,
3 4 The Shopcraft Agreement of Sept. 25, 1964, signed by
the Eastern, Western, and Southeastern Carriers’ Confer
ence Committee and the Railway Employees Department,
AFL-CIO.
3 5 The Nonshopcraft Agreement dated Feb. 7, 1965, be
tween the National Railway Labor Conference and the
Eastern, Western, and Southeastern Carriers’ Conference
Committee and the following unions: Brotherhood of Rail
way and Steamship Clerks, Freight Handlers, Express and
Station Employees; Brotherhood of Maintenance of Way
Employees; Order of Railroad Telegraphers; Brotherhood
of Railroad Signalmen; Hotel and Restaurant Employees
and Bartenders International Union.
36 Some of these major unions are the Brotherhood of
Maintenance of Way Employee (BM W E), Brotherhood of
Railway, Airline and Steamship Clerks, Freight Handlers,
Express and Station Employees (BR ASC ), and the Interna
tional Association of Machinists and Aerospace Workers
(IA M ).
61
62
neers (BLE, Independent).37 Declining railroad
employment and the resulting decline in union mem
bership has encouraged the smaller unions to merge
to strengthen their bargaining power.
The existing adjustment techniques for technolog
ical change that apply to nonoperating employees
include: Advance notice of change; various guaran
tees of job security, including crew size regulations
and transfer and retraining rights and benefits; limi
tations on subcontracting and provisions for shorter
work periods, income maintenance plans, and unem
ployment and retirement benefits. A discussion of
each technique follows.
Adjustment techniques
Advance Notice. Usually, the carriers notify the
union or unions affected at least 1 to 3 months in
advance of a planned change which will eliminate
positions. During this period, the parties may nego
tiate the individual conditions of each change in a
separate ad hoc agreement. The definition of
“change” is just beginning to extend beyond transfer
and consolidation of seniority rosters to include any
change in job function or in work methods. F or ex
ample, when jobs are to be “abolished” the two na
tionwide nonoperating employee agreements men
tioned earlier require advance notice. Notice must
be given to the union 60 days in advance of a job
abolition caused by technological, organizational, or
other operational change, including “contractingout” of work. If the change requires some employ
ees to relocate, 90 days’ notice must be provided.
After the required notice is given, the parties negoti
ate an “implementing agreement” which deals with
such specific adjustments as the realignment of sen
iority rosters, job content, or rates of pay. If a dis
pute develops over these implementing steps, the
37 In early 1969, the railway conductors and brakemen,
locomotive firemen and enginemen, trainmen, and switch
men merged their separate unions into a new organization,
the United Transportation Union (U T U ). Also by early
1969, the Brotherhood of Railway and Airline Clerks, a
nonoperating union, completed its merger with other non
operating craft unions including railway patrolmen, telegra
phers, and business machine technicians and other unions
covering similar occupations outside the railroad industry.
38 See U .S . E m e r g e n c y B o a r d , Steelton and Highspire
Railroad Company, 1944 (I. L. Sharfman, Chairman), U.S.
Government Printing Office, Washington, D.C., 1945.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
problem is referred to a special committee for ad
justment.
Job Security. Guarantee of job security is becoming
the pattern in railroad union agreements. Such pro
visions specify that no employee will be severed
from the payroll except for disciplinary reasons.
Some contracts, moreover, “stabilize” the work
force in each craft by setting a maximum annual
rate at which employment may decline. In both
types of seniority clauses, employment levels are re
duced only through attrition. This means that jobs
are abolished only because of the workers’ death or
retirement, or as workers quit or leave their jobs for
other reasons. Where the carrier has agreed to “sta
bilize” the work force, it must hire new workers if
losses through attrition exceed an agreed-upon num
ber. Agreement with these provisions, however,
often do not apply when layoffs are necessitated by
declining business or when employees have less than
a specified amount of service, or when employees
are seasonal. Moreover, these contracts usually con
tain special provisions for temporary layoff during
emergency weather conditions.
Some of the first agreements with employment
stabilization provisions based on attrition were nego
tiated by the Order of Railroad Telegraphers and
the Brotherhood of Railway and Steamship Clerks
in the late 1950’s and early 1960’s, when the rail
roads initially began installing electronic data proc
essing equipment and improved communications
systems. Some other agreements having job guaran
tees written into them included two in 1965: the
first, the national nonoperating, nonshopcraft em
ployees’ contract covering 255,000 workers and the
second, the agreement between the trainsmen and
23 eastern carriers, covering 80,000 workers. In ad
dition, the arbitration award in 1963, affecting
about 33,400 firemen, which resolved the dispute
over using firemen on freight diesels, provided var
ious job guarantees. (Also, see the section on “Sev
erance” provisions permitted by this aw ard.) The
problem of manning of locomotives has been one of
national importance since the diesels were first in
troduced in 1934.38
Crew Size Regulation. Additional job security in the
industry is provided when union contracts and state
laws require each train to operate with a minimum
size of crew or specify the crew’s occupational com
position. As of early 1969, five States— Arkansas,
TECHNOLOGICAL CHANGE, WORKING CONDITIONS AND EARNINGS
Indiana, New York, Ohio, and Wisconsin— still had
“crew consist” laws on the books compared to 14
States in the early 1960’s. Over the years, as the
trainmen were successful in negotiating agreements
regulating crew size, they no longer opposed the re
peal of State full crew laws. “Crew consist” laws or
contract provisions may remain in effect for many
years after an innovation has reduced labor require
ments, or altered duties, skills, or occupational
needs. An example of such a situation was the na
tional “rule” (contract) negotiated in 1937, requir
ing the use of a fireman on all freight, yard, and
passenger locomotives. On steam locomotives, which
represented virtually all locomotives in operation
that year, firemen stoked the furnaces and tended
the boiler to produce power. This duty was elimi
nated, however, on diesel-electric locomotives,
which by 1958 had nearly replaced all steam loco
motives. It was only in 1963, after negotiations by
the carriers and unions, that a study by a Presiden
tial Commission and a Congressional investigation
culminated in legislation calling for arbitration of
the dispute 394 At that time, the existing rule was
.
0
modified, permitting carriers to remove firemen’s po
sitions on about 90 percent of all freight locomo
tives.
The manning of train crews continues to be a
major industrial relations problem. For example,
one recent dispute involved an attempt to restore
trainmen helper jobs (also eliminated by the carriers
as a result of the 1963 arbitration aw ard). The ef
forts of the union to restore these jobs have been
relatively successful but negotiations continue on
this issue.'1
0
Transfer rights. In the past, transfers of workers
among the various railroad craft unions have oc
curred relatively infrequently, mainly because the
railroad work force is organized according to craft.
Seniority rights are usually accrued on the basis of
length of service in a particular craft as well as in a
seniority or geographic district. Thus, a worker who
transfers into another craft or geographic district
3 Public law 88-108, Aug. 28, 1963. See “The 1963
9
Railroad Arbitration Act,” M o n t h l y L a b o r R e v i e w , October
1963, Volume 86, N o. 10, pp. 1187-1188.
40 The 1965 trainmen agreement with 23 eastern carriers
fixed future crews at one conductor and 2 brakemen (or
switchmen or helpers). By the fall of 1968, it was esti
mated that roughly two-thirds of the railroad industry was
operating under contracts requiring these 3-man crews.
63
may lose some or all of his seniority, depending
upon the contract provisions.
All class I railroads and the labor unions with
which they bargain have been encouraged by the
Railroad Retirement Board to develop a job place
ment system; it operates like a clearinghouse and
provides transfer opportunities for employees who
are threatened with layoff from their present jobs.
Placement may be made both in and out of the in
dustry. When layoff is imminent, usually because of
abandonment of facilities, unemployment claims
agents employed by the railroads seek out roads that
are hiring workers and attempt to arrange transfers.
Frequently, these transfers are within the agent’s
carrier system. Where the available jobs are semi
skilled or unskilled, craft restrictions do not apply,
and transfers may cut across departmental or district
seniority lines. However, in the case of skilled shopcraft workers, the transfers have been made within
the same craft. Altogether, during the 11-month pe
riod July 1, 1968 to May 30, 1969, a total of 6,153
placements were made; slightly over three-fifths
were arranged within the railroad industry, itself.
Geographical transfers have been common in the
railroad industry throughout its history. In connec
tion with railroad mergers and consolidations, the
“Washington Agreement” provided moving allow
ances, including a salary maintenance or “displace
ment” allowance, which assured the person being
transferred that his earnings would not fall below
their current level for 5 years. The national con
tracts signed in 1964 and 1965 covered nonoperat
ing employees, provided for the payment of moving
allowances, patterned after the provisions of the
“Washington Agreement,” in cases of transfer re
sulting from road reorganization or from technologi
cal change. Expenses for moving household effects
and travel are usually covered, but losses incurred
from the sale of a house are not always covered.
There is also great variation among the contracts
about the number of days for which pay will be re
ceived and the conditions under which moving al
lowances will be paid. The National Contract for
operating employees, unlike that for non-operating
employees, does not provide for payment of moving
allowances in cases of job transfer.
Training. Use of training or retraining measures, as
a means of adjusting to technological change, has
differed widely among railroad occupations. The oc
cupational structure of the industry, ranging as it
64
RAILROAD TECHNOLOGY AND MANPOWER IN THE 19 70’s
does from the relatively unskilled worker who per
forms maintenance-of-way tasks to the highly skilled
craftsman and professional and technical worker, re
quires the services of persons with varying levels of
education and training. At the lower end of the oc
cupational spectrum, most jobs can be learned in a
short time and are usually interchangeable. There
fore, there is no great problem in training or retrain
ing. At the middle and upper level occupations, the
case is quite different. The skilled crafts, for exam
ple, require the completion of several years of formal
apprenticeship training to enter. This fact, along
with the seniority provisions of union agreements,
prevents crossing over from one skilled craft to an
other.
Railroads themselves have been providing training
to help some workers meet new demands. Railroad
clerks and the telegraphers have been most affected
by the introduction of com puter technology and
their contracts with the carriers have provided for
training workers with seniority to meet the require
ments of changed jobs, as in the agreement between
the Southern Pacific Company (Pacific Lines) and
the Brotherhood of Railway Clerks,41 effective
April 1, 1963.
Many of the carriers have training programs, out
side of collective agreements, which are directed to
ward improving and updating worker skills. Train
ing may be given on the job or be provided through
correspondence or other schools in the community.
Railroad workers— particularly those in the skilled
crafts and in some maintenance-of-way occupations
— often learn about new and changed equipment di
rectly from the equipment m anufacturer or the sup
plier.
Railroad unions, in turn, have also attempted to
set up training programs to help their members
qualify for available job opportunities in the railroad
industry. The Brotherhood of Locomotive Firemen
and Enginemen, an A F L -C IO affiliate, developed
an apprenticeship program for locomotive engineers
approved by the U.S. Department of Labor in Janu
ary 1966. Most of the carriers have rejected the
program, maintaining that retraining is not a bargainable issue. This dispute is still before the Fed
eral Courts.
41 Merged with Brotherhood of Railway, Airline and
Steamship Clerks, Freight Handlers, Express and Station
Employees in early 1969.
Limitations on Subcontracting. The issue of “con
tracting out” work is particularly important to the
shopcraft unions because diesel engine repair and
rebuilding are frequently accomplished in this way.
Some maintenance-of-way tasks and the installation
of new signal equipment are also subject to this
practice.
Restrictions on subcontracting to avoid job loss
are sometimes explicitly stated in the union contract.
When they are not so stated, such limitations have
been inferred from the clauses which defined the
scope of the agreement and its coverage. For the
most part, however, the subcontracting policy that
has evolved in this industry can be found in the
various arbitration awards of the National Rail
road Adjustment Board. Contracting out is generally
permissible if the carrier does not have adequate
equipment or properly trained men for special jobs,
or if there is an emergency time limit, with the fol
lowing stipulations: (1 ) The carrier must justify
subcontracting; (2 ) laid-off employees must be used
before outsiders are hired; and (3 ) proposed sub
contracting must first be discussed witli the un
ion (s) affected.
Displacement Allowances. Nearly all nonoperating
employees are now covered by contractual displace
ment allowance provisions modeled after those
found in the “Washington Agreement,” which pro
vides a guaranteed wage to displaced workers if they
accept transfers to other jobs. The displacement al
lowance guarantees an average of the previous
year’s earnings for a period of 5 years for the fire
men and for shopcraft workers; it is paid indefinitely
to nonshopcraft, nonsupervisory employees.
In 1964, the shopcraft unions negotiated an
agreement which extended the provisions of the
“Washington Agreement” to displacements resulting
from technological change, as well as from other
causes. The national contract of February 1965 for
nonshopcraft, nonoperating employees provides a
similar allowance to all these employees (other than
seasonal) who had completed 2 years of service
prior to October 1964 and were willing to accept a
transfer (see footnote 35 for unions concerned).
The arbitration award covering the issue of fire
men’s employment on diesels extended the displace
ment allowances of the “Washington Agreement” to
firemen, with more than 2 but less than 10 years of
service, who were offered “another comparable job.”
Manpower adjustment provisions found in collec
TECHNOLOGICAL CHANGE, WORKING CONDITIONS AND EARNINGS
tive bargaining agreements may represent sizable
cash benefits to the workers affected, as demon
strated in the findings of BLS research into situa
tions resulting from mergers and consolidations cov
ered by the “Washington Agreement.” 42 For
example, in a 1957 case involving the payment of
displacement allowances, $375,374 was paid over a
period of 40 months to 200 operating employees.
Two-thirds of this sum was paid in the form of par
tial benefits which averaged $132 a month per
worker; full benefits averaged $447 a month per
worker. In another case involving 37 employees, an
average of $765 was paid in displacement allow
ances to employees who lost their jobs, and $1,486
in moving allowances per worker who transferred.
In addition, the carrier provided affected employees
with free trips to their new location to look for
homes and familiarize themselves with their new
surroundings.
S everan ce o r D ism issal A llo w a n ces — The “Wash
ington Agreement” provides either a continuing al
lowance or a lump sum payment to employees who
lose their jobs as a result of merger. The continuing
allowance amounts monthly to 60 percent of the
employee’s last 12 months’ average pays. It is
granted for periods ranging from 6 months to 5
years, depending on length of service. Payments the
worker receives from the Railroad Unemployment
Insurance Fund are subtracted from the allowance.
The lump-sum payment is higher, but an employee
who chooses this alternative severs all ties; he must
resign his rights to recall, to maintenance of fringe
benefits, and to all other rights which continue while
on a temporary layoff status.
In the early 1960’s, contracts between individual
crafts and roads began to extend these “Washington
Agreement” allowances to layoff or severance result
ing from technological change. The agreements of
national nonoperating shopcraft and nonshopcraft
employees also extend these provisions to technolog
ical change and a wide variety of situations reducing
the work force. In the 1963 arbitration award which
resolved the firemen-on-diesels issue, provision was
made for lump-sum severance payments based on
seniority. It is estimated that between 1964 and
1968, some $35 million in severance payments were
made to firemen whose jobs were eliminated. Alto
gether, some 17,000 firemen jobs disappeared by
the end of 1968; some firemen, however, were able
to move into jobs as engineers.
65
Although not specifically related to technological
innovations, the law that created the National Rail
road Passenger Corporation (Am trak, see page 72)
provides that the Secretary of Labor has the ulti
mate responsibility for protecting employees “against
a worsening of their position with respect to their
employment.” With the law becoming effective on
May 1, 1971, the carriers and the rail unions failed
to negotiate a mutually acceptable job protection
plan, and Am trak submitted its plan to the Secre
tary who certified it as “fair and equitable.”
The Am trak plan, which the rail unions may
challenge in the courts, requires railroads to provide
full wages and benefits, up to 6 years on a monthly
basis, to workers displaced by A m trak’s planned
cutting of the N ation’s 300 passenger trains to 114.
Estimates of the number of workers to be affected
ranged from 12,000 to 25,000. Any income a
worker earned from other jobs would be subtracted
from these payments. He would be covered for up
to 6 years and would qualify for any pay increases
during the “protective” period, while still eligible to
be recalled to work. The worker would also have
the option of receiving lump sums of up to 1 year’s
salary, instead of the monthly payments.
Unemployment Benefits. Railroad workers are cov
ered by a Federal unemployment insurance system
which operates only within the railroad industry, is
financed by employer contributions, and provides
uniform benefits throughout the United States. Bene
fits are paid equal to 60 percent of the last daily
rate of pay of the unemployed worker, up to a max
imum daily benefit of $12.70. Nearly all beneficiar
ies are awarded the maximum benefit of $12.70 a
day. Unemployed workers receive benefits for twen
ty-six 5-day weeks. For workers with many years of
railroad service, there are additional weeks of bene
fits: 14 for workers with 10 to 14 years of service
or 26 for workers with 15 or more years of service.
Special provisions allow a worker who has frequent
ly-recurring spells of unemployment to qualify re
peatedly for benefits, each time he becomes unem
ployed.
Unlike the several State unemployment compensa
tion programs, the Railroad Unemployment Insur
ance (R U I) system does not vary in terms of
42
“Studies Relating to Railroad Operating Employees,”
Appendix Volume III to the Report of the Presidential
Commission, Washington, D.C., Feb. 1962, pp. 136-171.
66
coverage, benefit amount and duration, qualification
requirements, and the proportion of weekly income
replaced. Also, the railroad program is more liberal
than the State programs in two other respects: dis
qualification provisions and compensation for inter
mitten days of unemployment.
Retirement. Retirement is yet another way in which
the work force may adjust to technological change.
In 1966, for example, 5.6 percent of all railroad
workers were 65 years old or older compared with
3.6 percent of all nonfarm workers. A t the present
time, only about one-third of all railroad workers
elect to retire at age 65, and few union agreements
have mandatory retirement provisions, although
early retirement is possible. In the benefit year,
1967-68, some 40,000 persons retired. The average
age of those retiring for reasons other than disability
was 66.5 years. Between 1963 and 1967 (the latest
year for which this information is available) an av
erage of 99,000 persons have retired each year, a
figure far in excess of the net decline in employment
each year since 1963.
Railroad employees are covered by a compulsory
pension system, the National Railroad Retirement
System, which is administered by the Federal Gov
ernment, but financed by a tax on employee earn
ings and on payrolls. Pension benefits, starting at
age 65, are determined by length of service and
amount of earnings. Legislation enacted in 1966
provides for the payment of an additional annuity at
age 65 to persons entitled to an age or disability an
nuity who have completed 25 or more years of serv
ice and who have a current connection with the rail
road industry. Beginning with 1971, employees
forfeit the supplemental annuity if they work in the
railroad industry beyond a specified closing date.
This closing date for the years after 1973 is the end
of the calendar month following the month in which
the employee reaches age 65, with somewhat higher
ages applicable for the years 1971 through 1973.
Early retirem ent on a reduced annuity, is possi
ble at age 62 for employees with 10 years or more
of railroad employment. All employees with 30
years of railroad service can retire at age 60, though
the amount of the pension is reduced for men who
exercise this option. In fiscal year 1967-68, about
16 percent of all those who retired because of age
(rather than for disability) did so early and on a re
duced annuity; their average age was 63.2 years.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
Earnings and Working Conditions. The introduction
of technological change in the railroad industry has
affected working conditions and frequently has re
sulted in adjustments in wage rates. Wage rates and
working conditions, including hours of work and
overtime provisions, are covered in the labor-man
agement agreements that apply to most of the work
ers in the industry. Their basic work schedules dif
fer, depending on the kinds of work they do. For
example, the basic workweek of the great majority
of workers employed at terminals— in railroad
yards, stations and offices— is 40 hours of five 8hour days; overtime is usually paid after 8 hours of
work a day.
However, train and engine crew members are
paid according to different rules, in terms of their
movement over the road. They must either cover a
specified number of miles, or else have worked a
certain number of hours, before receiving extra pay.
Workers in occupations that directly serve passenger
needs work a stipulated number of hours each
month before receiving premium pay for overtime
work. Also, irregular work schedules are common
among railroad workers who do not have regular as
signments but are called in when their sendees are
needed. Train service must be provided 24 hours a
day and, thus, railroad workers must often work
nights, weekends, and on holidays. This accounts for
the higher-than-average workweek in this .industry
compared with all manufacturing industries. (See
table 40.)
The basic wage formula for operating employees
takes into consideration minimum daily guarantees,
mileage pay, graduated rates, special allowances
which are higher than standard rates and mileage
limitation rules. The pay system for nonoperating
employees is much simpler and is primarily on a
time basis, hourly, daily, or monthly.
Average hourly earnings (including premium
pay) of class I railroad workers are higher than
those paid to workers in manufacturing generally. In
1968, for example, class I railroad workers earned
an estimated $3.39 an hour, on the average, com
pared with an estimated average hourly rate of
$3.01 for workers in all manufacturing industries.
This relationship has persisted since 1957, through
the spread between average hourly earnings in class
I railroads and in all manufacturing has ranged
widely, from a low of 21 cents an hour in 1957 to
an estimated high of 38 cents an hour in 1968 (see
67
TECHNOLOGICAL CHANGE, WORKING CONDITIONS AND EARNINGS
Table 40.
Hours and earnings of workers in manufacturing and class I railroads, 1947, 1957, and 1960-68
Class 1 railroads1
A ll m anufacturing2
Year
Average
hourly
earnings
Average
weekly
earnings
1947.................................................................................................................................................
$1.19
1957.................................................................................................................................................
2.26
I9 6 0 .................................................................................................................................................
1961.................................................................................................................................................
1962.................................................................................................................................................
1963.................................................................................................................................................
1964.................................................................................................................................................
1965.................................................................................................................................................
1966.................................................................................................................................................
1967.................................................................................................................................................
1968.................................................................................................................................................
2.61
2.67
2.72
2.76
2.80
3.00
3.09
3.24
3 3.39
Average
weekly
hours
Average
hourly
earnings
Average
weekly
earnings
$55.03
46.4
$1.22
$49.17
40.4
94.24
41.7
2.05
81.59
39.8
108.84
112.94
115.87
118.40
121.80
130.80
135.65
139.97
3 149.16
41.7
42.3
42.6
42.9
43.5
43.6
43.9
43.2
3 44.0
2.26
2.32
2.39
2.46
2.53
2.61
2.72
2.83
3.01
89.72
92.34
96.55
99.63
102.97
107.53
112.34
114.90
122.51
39.7
39.8
40.4
40.5
40.7
41.2
41.3
40.6
40.7
Average
weekly
hours
1 Excludes executives, officials, and staff assistants (ICC group I).
3 8-month averages.
1 Applies to production workers only.
SOURCE: Bureau of Labor Statistics and Interstate Commerce Commission.
Table 41. Average straight time pay, by occupational group, class I railroads, 1957 and 1967
Average straight tim es rates 1
Percent of total employees
Occupational group
1957
Executives, officials, and staff assistants....................................................................................................
Professional, clerical, and general...............................................................................................................
Maintenance of way and structures.............................................................................................................
Maintenance of equipment and stores........................................................................................................
Transportation (other than train, engine and y a rd )..................................................................................
Transportation (yardmasters, switch tenders, and hostlers)...................................................................
Transportation (train and engine service)..................................................................................................
A ll employees (excluding switching and terminal companies)................................................................
1967
Percent
change
1957-67
1957
1967
$4,512
2.300
2.002
2.222
2.123
2.631
2.385
2.288
$6,648
3.364
2.976
3.196
3.113
3.698
3.220
3.302
47.3
46.3
48.7
43.8
46.6
40.6
35.0
44.3
1.65
19.27
17.32
24.99
11.69
1.44
23.64
100.0
2.54
21.53
14.82
22.70
9.34
1.61
27.46
100.0
1 Includes "straight tim e paid for” in train and engine service, and “ time actually
worked and paid for at straight time rates” in other services.
SOURCE: Interstate Commerce Commission.
Table 42.
Employee compensation, class I railroads, 1965
All employees
Per hour
Compensation practice
Percent of
compensation
Paid for
Working time
100.0
$3.71
$4.04
87.8
78.5
2.0
6.9
5.0
1.5
.4
.3
3.26
2.91
.07
.26
.19
.06
.01
.01
3.55
3.17
.08
.28
.20
.06
.01
.01
12.2
8.0
5.0
2.3
.7
4.2
3.3
.9
.45
.30
.19
.09
.03
.16
.12
.03
.49
.32
.20
.09
.03
.17
.13
.04
1 Includes m ilitary, ju ry , funeral, and personal leave, not presented separately.
NOTE: Due to rounding, sums of individual items may not equal totals.
3 Includes savings and th rift plans, not presented separately.
SOURCE: Bureau of Labor Statistics.
68
table 40.)
Average straight time rates in class I railroads
rose by nearly 45 percent between 1957 and 1967,
as can be seen in table 41. This rate of increase was
exceeded in every major occupational group except
in Transportation (train and engine service), Trans
portation (yardmasters, switchtenders, and hos
tlers), and in M aintenance of equipment and
stores.43
Straight time pay for time worked is the major
component of employer expenditures for the com
pensation of employees. To arrive at total compen
sation, it is necessary to include employer payments
for overtime and other premium payments, pay
ments for leave time (vacations, holidays, sick
leave, and other leave), terminal (severance) pay
ments and expenditures for legally required insur
ance programs and private welfare plans operated
for the benefit of employees. In 1965, average com
pensation of all class I railroad workers amounted
to $4.04 per working hour,44 $3.17 of which was
straight time pay, and 87 cents pay supplements.
(See table 42.) By 1967, the BLS estimated total
straight time pay per hour of working time in class I
railroads had risen to $3.51, and supplements to
straight time pay to $1.00 a working hour.45 Total
compensation rose by about 11 percent in the 2-
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
year period, from $4.04 to $4.51 an hour. Straight
time pay increased because of pay raises that were
negotiated while the level of supplemental expendi
tures grew because of higher employer payments for
railroad retirements, health and welfare benefits,
premium pay, and vacations.
43 Wage statistics which provide information for the
years 1957 and 1967 and from which average straight time
rates may be computed for the detailed occupations that
comprise the major occupational group are available from
the Interstate Commerce Commission A-300 Reports, Wage
Statistics of class I railroads in the United States.
44 Hours paid for consist of aggregate hours worked,
paid leave hours, rest periods, coffee breaks, machine
downtime, and other nonleave hours paid for but not
worked, for which employers made direct payments to work
ers during the year. Excluded are hour equivalents for
which pay was received though actual hours were not in
volved; for example, hours paid for because of additional
mileage or because of extra work during regular working
hours. Working time excludes paid leave hours. Unless oth
erwise noted, all rates are expressed as per hour of work
ing time.
45 See “Employment Compensation and Payroll Hours,
Railroads, 1965,” Report 335-3, U.S. Department o f Labor,
Bureau of Labor Statistics. Also, see “Pay and Fringe Ben
efits of Railroad Employees,” by Robert E. Pope, in
M o n t h l y L a b o r R e v i e w , Sept. 1968, Vol. 91, No. 9, pp.
45-48.
Appendix I Tables
1.
Railroads and other transportation, new plant and equipment expenditures, 1945-70
[billions o f dollars]
Total expenditures
Year
Railroads
All other transportation
Amount
As a percent of
all industries
Amount
As a percent of
all industries
1945...............................................
1946...............................................
1947...............................................
1948...............................................
1949...............................................
.55
.58
.91
1.37
1.42
6.3
3.9
4.7
6 .4
7.5
.57
.92
1.30
1.27
.88
6.6
6.2
6.7
6 .0
4.6
1950...............................................
1951...............................................
1952...............................................
1953...............................................
1954...............................................
1.18
1.58
1.50
1.42
.93
.8
6.2
5.7
5.0
3.4
1.19
1.47
1.47
1.53
1.46
5.9
5.8
5.6
5 .4
5 .4
1955...............................................
1956...............................................
1957...............................................
1958...............................................
1959...............................................
1.02
1.37
1.58
.86
1.02
3.5
3.8
4.2
2.7
3.0
1.56
1.66
1.71
1.43
2.11
5.3
4 .6
4.5
4.5
6.3
1960...............................................
1961...............................................
1962...............................................
1963...............................................
1964...............................................
1.16
.82
1.02
1.26
1.66
3.2
2.3
2.7
3.1
3.5
1.96
1.96
2.17
1.98
2.52
5.3
5.5
5.7
4.9
5 .4
1965...............................................
1966...............................................
1967...............................................
1968...............................................
1969 p ...........................................
1970 e ...........................................
1.99
2.37
1.86
1.45
1.83
1.94
3.7
3.7
2.8
2.1
2 .4
2 .4
2.90
3.38
3.77
4.15
4.20
3.96
5.3
5.3
5.8
6.1
5.6
4.8
P—Preliminary.
E—U.S. Dept, of Commerce and SEC. estimate.
SOURCE: Securities and Exchange Commission (SEC).
69
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
70
2.
Class I Railroads, methods of financing, by year, 1957-67
[ thousands of dollars]
Debt issues 1
Conditional
contracts &
deferred
payments
T o ta l..........
3,463,175
1957........................
1958........................
1959........................
1960........................
1961........................
Stock
issued
Corporate
equipment
obligations
(par value)
Year
Total debt
plus stock
Other
Total
2,553,008
1,693,253
7,709,436
771,985
8,481,421
279,938
113,884
138,451
150,807
107,705
359,501
175,180
170,505
180,193
118,215
61,207
225,014
176,583
241,824
191,069
700,646
514,078
485,539
572,824
416,989
14,912
30,393
144,544
60,765
145,783
715,558
544,471
630,083
633,589
562,772
1962........................
1963........................
1964........................
1965........................
1966........................
178,896
211,022
435,302
545,079
798,286
135,980
240,900
318,976
258,345
341,968
60,377
183,506
184,598
218,227
50,457
375,253
635,428
938,876
1,021,651
1,190,711
10,923
40,884
78,389
79,656
44,319
386,176
676,312
1,017,265
1,101,307
1,235,030
1967........................
503,805
253,245
100,391
857,441
121,417
978,858
1Does not include any new debt issues of those companies in
receivership. In 1966, there were none issued by these companies.
SOURCE: T ra n sp o r t S t a tis tic s in th e U n ite d S ta te s — ,
Interstate Commerce Commission, Washington, D.C., tables
146, 146A, 147A.
Appendix II Tables
1.
Locomotives in Service, by type, 1947-67
Total secondgeneration
locomotives 2
(cumulative)
Year
Total
locomotives
Diesel
Steam
Other 1
1947...........................................
1948...........................................
1949...........................................
1950...........................................
41,719
41*851
40*691
40*494
5,772
8,089
10,888
14,047
35,108
32,914
28*964
25,640
839
848
839
807
1951...........................................
1952...........................................
1953............................................
1954...........................................
1955...........................................
40,036
37,343
35*009
32*872
31*429
17,493
20*492
22*503
23,531
24*786
21,747
16,078
11*787
8,650
5*982
796
773
719
691
661
1956...........................................
1957...........................................
1958...........................................
1959...........................................
1960...........................................
30,433
30*248
29*513
29*493
29*080
26,081
27,186
27,575
28*163
28,278
3,714
2*447
1*350
754
261
638
615
588
576
541
1961...........................................
1962...........................................
1963...........................................
1964...........................................
1965...........................................
28,815
28,639
28,449
28,300
27,816
28,169
28,104
27,945
27,837
27,389
112
51
36
34
29
534
484
468
429
398
288
1,052
1,886
2,957
4,344
1966...........................................
1967...........................................
27,886
27,687
27,481
27,309
25
21
380
357
5,763
6,872
1The “Other” category includes electric and turbine
locomotives
2This is a cumulation o f new purchases 1961-67. The tech
nology for second-generation diesels was first sold in 1961 and
it is assumed here that all new purchases thereafter were of that
type.
SOURCE: Interstate Commerce Commission as summarized
in R a ilr o a d T ra n sp o r ta tio n , AAR, April 1965 for years 1948-53;
all other years, F a c t B o o k 1 9 6 9 summary of ICC information,
p. 68.
71
72
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
2. Piggyback freight carloadings o f 1 or more
trailers, 1955-69
Year
Carloadings
1955
1956
1957
1958
1959
168,150
207,783
249,065
278,071
416,508
1960
1961
1962
1963
1964
554,115
591,246
706,441
797,474
890,748
1965
1966
1967
1968
1969
1,034,377
1,162,731
1,207,242
1,337,149
1,344,123
SOURCE: Association of American Railroads.
3.
Automatic car identification (ACI) applications 1
Applications
Description of Application
Commercial
1.
Intransit weighing (ore)........................
Scanner system, connected to a weigh-in-motion scale, com
putes cargo weight and transmits with car number to shipper
and to R R data processing, via teletype.
2.
Notice of train arrival, to customer_
_
Scanner transmits car number and time of train passing to com
puter center, via teletype. Future: (1) Automatic route-setting
(2) Automatic payroll information (3) Train Announcement.
Management central office uses.........................
Linkage of Traffic, Operating, and Accounting Departments
through use of car initial and number. Inform ation access re
sults in best car type to shipper, movement control across rails,
proper charges, and collection.
73
APPENDIX II
3.
Automatic car identification (ACI) applications1 Continued
—
Applications
1.
Operational C ontrol.............................
2.
Car Accounting Department
(Key Punch Section).........................
Description of Application
Prevention of missed connections, and advance knowledge ol
power needs, train length, tonnage limits.
Closing open records on cars and trailers.
3.
Car Accounting D epartm ent..............
Automatic audit of per diem and mileage payable and per diem
receivable.
4.
Car M aintenance...................................
Mileage calculation as required for car maintenance scheduling.2
5.
Equipment Utilization..........................
Keeps car availability records and locates cars for special
cargoes.
6.
Improved Customer Service................. Specific cargo information on delays (why-where-how long to
shipper or consignee), if there is delay.
7.
Car T racer..............................................
Elimination of car tracer form for closing open records on cars
and trailers.
1.
Hump y ard .............................................
Scanners at yard entrances—check incoming, outgoing cars,
provide exact location of inventory; scanners on other side of
hump crest (combined with yard switching systems) read
labels, align switches for classification, update inventory file;
scanner between classification and departure yards—produce
waybill list.
2.
Car Repair Track A rea........................
Scanners at entrance and exit to car repair area — Automatic
inventory of cars in shop, with automatic notification to car
user.
3.
Locomotive Service A rea................... Scanners at entrance—arrival and departure information,
availability, utilization, maintenance, and I.C.C. inspection
scheduling.
4.
Piggyback Terminals.............................
Scanner at each Piggyback Terminal—immediate trailer and
container inventory, reduce open records.
5.
Point of Interchange.............................
Scanner shared by connecting roads—receipt and delivery
information exchange, eliminate open car records.
Field
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
74
3.
Automatic car identification (ACI) applications 1
—Continued
Description of Application
Applications
6.
Interlocking Plant O peration..............
7.
Centralized Traffic Control (CTC)
Machine O peration...............................
8.
Line-of-Road Car Defect D etectors..
Automatically operate signal interlocker control equipment
through scanner reading of routing label.
Scanner identification of train priority, length, and tonnage
would allow automatic CTC train dispatching from yard,
enlarging dispatcher territory.
Scanners located adjacent to detectors (hotbox, broken flange,
loose wheel, load imbalance, clearance, and dragging)
identify defective cars and provide direct radio information
to car crews.
1Applications limited to individual roads, pending development and adoption of national identification standards. All
applications are experimental unless noted.
2 Applications feasibility based on Chicago Transit Authority
Tests.
SOURCE: Data Systems Division, Association o f American
Railroads, Addresses, Panel Discussion, and Workshop Papers,
October 17-19, 1966.
Appendix III
1 Alternative productivity forecasting technique
.
An alternative method of forecasting productivity
developed by the Bureau of Labor Statistics, which
covers the period to 1980, tends to confirm a con
tinued high rate of productivity increase. In this ap
proach, productivity increments are obtained as the
sum of the gain due to output increases and a gain
due to time; the latter includes gains from tech
nical change and more efficient labor-capital
combinations \ Various transformations of data are
used to eliminate shortrun cyclical disturbances
which obscure the longrun behavior pattern of pro
ductivity with respect to output. The significance of
this approach is its use of output as an independent
variable affecting productivity.
The study was based on quarterly data for the pe
riod 1954-66, and thus, this analysis covers periods
of both increasing and decreasing output, unlike the
productivity estimates which are based on the expe
rience of the 1961-67 period. Taking the final fore
casting equation from the report, which is shown
below, we find a quarterly rate of productivity
change cf 1.42 percent with output constant and an
elasticity of productivity with respect to output of
0 . 20 .
Thus, % A Q /L = 1.42% + .20 (% A Q )
Q = Output (weighted combination
freight and passenger traffic).
L — Labor.
of
In using this equation, the temporal variable is
eliminated. Thus, with no change in output, the pro
ductivity growth rate is 1.42 percent per quarter. If
output increases, as is expected in the future, a sec
ond element is added to the quarterly growth rate
— for each one percent increase in output, an incre
ment of .20 percent is added. Thus, if output were
to grow by 1 percent per quarter, total productivity
gain would be 1.62 percent per quarter.
1 See P r o d u c t i v i t y in th e R a i l r o a d I n d u s tr y , Report 377,
U.S. Department of Labor, Bureau of Labor Statistics,
Mar. 1970.
2. Methodological note on output per man-hour
The index of total revenue traffic (R T U ’s) is an
output series using different statistical weights to
combine passenger traffic with freight traffic. These
weights are derived by dividing passenger revenue
per mile by freight revenue per mile for 1947-49,
1957-59, and 1963. The corresponding weights for
the periods 1947-49 and 1957-59 were 1.88/1.00
and 1.99/1.00 respectively; for 1963 to date, it is
2.43/1.00. Revenue passenger miles, multiplied by
the appropriate weight, results in a revenue traffic
unit quantity which is added to revenue ton-miles
and then converted into an index number. (F or his
tory of output per m an-hour since 1939, see appen
dix m -3 ,4).
75
RAILROAD TECHNOLOGY AND MANPOWER IN THE 19 70’s
76
3. Railroad transportation-revenue traffic (SIC 401) output per man-hour, unit labor requirements, and related
data, all employees, 1939-70
[indexes, 1967 = 100]
Output per—
Unit labor requirements
in terms of—
Related data
Year
Employee
Man-hour
Employees
Man-hours
Output
Employees
Man-hours
1939..............................
31.4
27.9
318.0
358.4
50.5
160.6
181.0
1947..............................
1948..............................
1949..............................
45.2
44.4
40.9
'38.3
37.6
36.7
221.3
225.3
245.0
261.1
265.7
272.4
99.6
96.1
79.6
220.4
216.5
195.0
260.1
255.3
216.8
1950..............................
1951..............................
1952..............................
1953..............................
1954..............................
1955..............................
1956..............................
1957..............................
1958..............................
1959..............................
1960..............................
1961..............................
1962..............................
1963..............................
1964..............................
1965..............................
1966..............................
1967..............................
1968..............................
1969..............................
1970..............................
43.5
45.7
45.3
45.1
46.3
52.2
54.6
54.8
57.5
61.3
63.5
67.9
73.0
78.2
84.4
92.9
99.6
100.0
105.9
42.0
44.4
44.6
44.8
46.6
51.6
54.0
54.8
57.6
61.2
63.6
68.2
72.6
77.1
82.1
90.8
97.5
100.0
104.4
109.2
109.7
229.6
218.8
220.9
221.7
215.8
191.4
183.2
182.5
173.9
163.1
157.5
147.3
137.1
127.9
118.5
107.7
100.4
100.0
94.4
90.0
89.3
238.3
225.1
224.5
223.3
214.5
194.0
185.1
182.5
173.5
163.4
157.2
146.7
137.7
129.6
121.7
110.1
102.5
100.0
95.8
91.6
91.2
87.1
95.6
91.2
89.4
81.2
91.0
94.1
89.6
80.1
82.9
82.2
80.8
84.7
83.1
92.9
97.8
103.1
100.0
102.5
105.4
104.2
200.0
209.2
201.5
198.2
175.2
174.2
172.4
163.5
139.2
135.2
129.5
119.0
116.1
112.7
110.1
105.3
103.5
100.0
96.8
94.9
93.1
207.6
215.2
204.7
199.6
174.2
176.5
174.2
163.5
139.0
135.5
129.2
118.5
116.6
114.2
113.1
107.7
105.7
100.0
98.2
96.5
95.0
111.1
111.9
77
APPENDIX III
4. Railroad transportation-revenue traffic (SIC 401) output per man-hour, unit labor requirements, and related
data, production workers 1939-70
[indexes, 1967= 100]
Output per—
Unit labor requirements
in terms of—
Related data
Year
Production
worker
Production
worker
man-hour
Production
workers
Production
worker
man-hours
Output
Production
workers
Production
worker
man-hours
1939..............................
30.5
27.2
328.1
367.7
50.5
165.7
185.7
1947..............................
1948..............................
1949..............................
43.2
42.5
39.3
36.7
36.1
35.5
231.5
235.5
254.4
272.8
277.1
281.8
99.6
96.1
79.6
230.6
226.3
202.5
271.7
266.3
224.3
1950..............................
1951..............................
1952..............................
1953..............................
1954..............................
1955..............................
1956..............................
1957..............................
1958..............................
1959..............................
1960..............................
1961..............................
1962..............................
1963..............................
1964..............................
1965..............................
1966..............................
1967..............................
1968..............................
1969..............................
1970..............................
41.9
43.8
43.5
43.4
44.9
50.6
52.9
53.3
56.4
60.2
62.5
67.1
72.2
77.3
83.5
92.3
99.2
100.0
106.0
111.4
112.6
40.4
42.7
43.0
43.3
45.4
50.2
52.7
53.7
57.1
60.6
63.2
68.1
72.4
76.9
81.9
91.0
97.6
100.0
104.4
109.3
109.9
238.9
228.5
229.9
230.5
222.5
197.7
189.1
187.7
177.2
166.0
160.1
149.0
138.5
129.3
119.7
108.4
100.8
100.0
94.3
89.8
88.8
247.3
234.0
232.6
231.0
220.1
199.0
189.6
186.3
175.3
164.9
158.2
146.8
138.1
130.0
122.2
109.9
102.4
100.0
95.8
91.5
91.0
87.1
95.6
91.2
89.4
81.2
91.0
94.1
89.6
80.1
82.9
82.2
80.8
84.7
88.1
92.9
97.8
103.1
100.0
102.5
105.4
104.2
208.1
218.4
209.7
206.1
180.7
179.9
177.9
168.2
141.9
137.6
131.6
120.4
117.3
113.9
111.2
106.0
103.9
100.0
96.7
94.6
92.5
215.4
223.7
212.1
206.5
178.7
181.1
178.4
166.9
140.4
136.7
130.0
118.6
117.0
114.5
113.5
107.5
105.6
100.0
98.2
96.4
94.8
RAILROAD TECHNOLOGY AND MANPOWER IN THE 19 70’s
78
5. Leading railroads
Choice of roads
The leading railroads were chosen on the basis of
a ranking of all of the 76 class I railroads reporting
to the Interstate Commerce Commission in 1965.
To make the data more manageable for historical
analysis, while retaining representative coverage, the
76 railroads were segregated into groups on the
basis of m an-hour inputs. Companies having over
20,000,000 man-hours as a labor input were chosen
for further analysis. Twenty-two companies fell into
this category. Their man-hours comprised 82 per
cent of the class I total in 1965.
These 22 were then segregated into three geo
graphic districts to permit some allowance to be
made for the effect of a different traffic mix on out
put per man-hour in various parts of the country.
The roads were then ranked within geographic dis
tricts on the basis of Revenue Traffic Units per all
employee man-hour. The most efficient in each dis
trict (southern, eastern and western) was then cho
sen for further analysis.
As a check on the choice of these roads, an addi
tional tabulation and ranking of the 22 large
companies was made for 1956. In the 1956 ranking,
the 1965 leader was also first in one district, was
second in another and sixth (of 10) in the third dis
trict. Still another criteria was applied by ranking in
accordance with the percent of increase in Revenue
Traffic Units per man-hour from 1956-65, on the
theory that the largest change ratios represented
companies with good or vastly improving manage
ments.
Procedure of study and data adjustment
A merger history of the selected companies was
used to ensure comparability of beginning and end
Revenue Traffic Units per all employee man-hour
(referred to hereafter as productivity). The compa
nies that were merged into the parent were included
in years prior to the merger to avoid incorrect com
parisons of man-hours and output.
The revenue passenger miles and revenue tonmiles were combined with the same weights as are
used in the Bureau’s regular work with the industry.
Linking procedures were also the same as the regu
lar method.
The data were tabulated for years 1956-66 and a
weighted average was obtained for the leading rail
roads. The procedure was aggregation of all man
hours and of all Revenue Traffic Units with
subsequent division of the latter by the man-hours.
Source of data
Revenue ton-miles and revenue passenger-miles
are published in the Interstate Commerce Commis
sion’s T ran sport S ta tistics in the U n ited S ta tes for
1956; later data appears in the ICC’s “A bstract of
Individual class I roads.”
The source of the m an-hour data is the individual
road report on file with the Interstate Commerce
Commission, “Monthly R eport of Employees, Serv
ice and Compensation” (4th quarter for annual).
The man-hours were compiled as follows: From
Service Hours under Division V ia, column 4, “Time
worked and paid for a straight time rates;” plus col
umn 5, “Overtime paid for at punitive rates;” plus
Division VIb total transportation (train and engine)
column 4, “Straight time actually worked;” plus col
umn 6, “Overtime paid for;” plus column 7, “Con
structive allowances.” Thus, for each railroad, five
individual man-hour figures were picked up to yield
the total man-hours for the railroad.
79
APPENDIX III
6.
Revenue traffic units (RTU’s) per man-hour for railroads and industry, 1965
Year
Railroad “A”,
southern district
Railroad “B”,
eastern district
Railroad “C”,
western district
“Best” railroad
average
Average for
industry
Industry
average
as percent
of “Best”
railroad
average
1956............
1957............
1958............
1959............
1960............
1961............
1962............
1963............
1964............
1965............
1966............
435.1
452.4
457.3
494.4
510.5
556.2
583.9
625.3
659.6
686.0
722.1
324.6
321.3
356.4
367.3
374.7
392.4
435.8
480.3
522.7
578.7
588.2
325.4
343.9
362.2
399.0
418.7
470.0
521.8
575.1
630.1
694.6
733.1
369.4
380.3
399.3
426.0
439.4
476.9
518.1
562.2
606.6
652.6
680.8
314.9
320.3
336.1
357.3
372.3
398.2
423.5
450.1
478.6
526.0
563.3
85.2
84.2
84.2
83.9
84.7
83.5
81.7
80.1
78.9
80.6
82.7
SOURCE: Bureau of Labor Statistics and Interstate Commerce Commission.
7. Road and equipm
ent, constant dollar value series1
The value of road and equipment in 1948 (the
base year for the series) was obtained from the ICC
as of January 1, 1949. The 1948 current dollar
figure was adjusted, using the railroad construction
index published by the ICC which was rebased to
make the year 1958 equal 100. The method used
was to divide the current dollar value (before depre
ciation) by the index to arrive at an approxim ation
of the 1948 value of the road and equipment. After
1948, each year’s road and equipment value was
obtained by adjusting current dollar gross capital ex
penditures as published by the Office of Business
Economics (O B E ) by using the ICC index, depre
ciating that figure and then adding it to the preced
ing year’s base stock which was also depreciated.
Two depreciation ratios were used to obtain the
final figures for each year. First, to obtain the new
base stock, a ratio of .9753 was used as the depre
ciation factor for that year. This ratio was obtained
by assuming a 40-year life for the capital. Forty
years is obviously a compromise figure, since part of
the total value of the capital is that derived from
land which is more likely to increase in value than
decrease over time. On the other hand, an average
of about 55 percent of the capital expenditures are
for car purchases; these cars are very long-lived, but
nevertheless, subject to economic deterioration.
Other major expenditure categories are likewise
long-lived, yet this equipment, too, wears out. D ata
for the industry from the Internal Revenue Service
indicate that over the period 1954-64, the ratio of
depreciation taken to the preceding year’s total de-
1 See unpublished report, Productivity Trends in U.S.
Transportation Industries by John W. Kendrick, prepared
for U.S. Department of Transportation (control number
C -286-66). Also see Capital in Transportation, Communica
tions and Public Utilities: Its Form and Financing, by
M. J. Ulmer, Princeton, Princeton University Press, 1960.
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
80
preciable assets is consistent with the 40-year esti
mated depreciation schedule.
A second ratio— .9876— was used to depreciate
reported gross capital expenditures before adding
8.
them to the previous year end stock. Expenditures
are treated as being spaced evenly throughout the
year with only half the investment subject to depre
ciation on the average.
Product and input value in U .S. railroads, 1947-68
Year
Gross product
originated
(millions,
constant
dollars)
Value of
inputs 1
(millions,
constant
dollars)
Gross product
per unit of
in p u t2
1947........................................................................
1948........................................................................
1949........................................................................
10,700
10,500
8,700
3,482
3,324
2,912
3.07
3.16
2.99
1950........................................................................
1951........................................................................
1952........................................................................
1953........................................................................
1954........................................................................
9,500
10,600
10,100
9,900
8,900
2,841
2,952
2,827
2,817
2,377
3.34
3.59
3.57
3.51
3.74
1955........................................................................
1956........................................................................
1957........................................................................
1958........................................................................
1959........................................................................
9,900
10,000
9,500
8,400
8,900
2,482
2,479
2,399
2,065
2,122
3.99
4.03
3.96
4.07
4.19
1960........................................................................
1961........................................................................
1962........................................................................
1963........................................................................
1964........................................................................
8,700
8,700
9,200
9,700
10,200
2,058
1,976
2,067
2,090
2,151
4.23
4.40
4.45
4.64
4.74
1965........................................................................
1966........................................................................
1967........................................................................
1968 3.....................................................................
11,000
11,700
11,200
11,300
2,170
2,160
2,068
2,119
5.02
5.42
5.42
5.33
1These inputs include fuel, rail, ties, and other materials and
supplies required to carry on day-to-day business operations.
2This series will have a slight upward bias since it is based on
Gross Product originated by all railroads while the input data
are available only for class I railroads.
3 Preliminary.
SOURCE: Office of Business Economics, U.S. Department
of Commerce and the Bureau of Labor Statistics, U.S. Depart
ment of Labor.
APPENDIX III
81
9. Methodological note on derivation of total fuel requirements and efficiency
The first requirement in assessing the efficiency of
fuel use in the industry is to convert the several dif
ferent kinds of fuel into comparable units. This was
accomplished by coverting fuel from conventional
units of measure into British Thermal Units
(BTU’s). Table 72 of the Interstate Commerce
Commission’s, T r a n s p o r t S ta tistic s, lists the basic
fuels used, by type* and amount. Anthracite and bi
tuminous coal are shown as separate fuels. The bi
tuminous figure includes other fuels, used in small
quantities, but whose unit measure is “ton.” Fuel oil
(kerosene), diesel oil, and gasoline are shown as
separate entities. “Fuel oil” includes other fuels, not
otherwise shown, measured in gallon units. Each of
these latter four fuels are shown in ICC’s table 72
with gallons as the unit of measure. All liquid meas
ures were converted to barrels, using a conversion
factor of 42 gallons per barrel, since BTU equiva
lents were for barrel units. This base data was tabu
lated for the years 1948 and 1954 through 1966.
BTU conversion factors, for gasoline, fuel oil, diesel
and coal, as shown in the following table, were ob
tained from the U.S. Department of Interior’s Bu
reau of Mines, and for wood and electricity from
P e tr o le u m F a c ts a n d F ig u re s, by the American Pe
troleum Institute.
B ase F u el
U n it o f
m easu re
B T U c o n v e r s io n f a c to r s
(In th o u s a n d s )
1948
Bituminous c o a l ____ Ton
Anthracite c o a l_____ Ton
Fuel o i l ____________Barrel
Diesel o i l __________ Barrel
Gasoline ---------------- Barrel
W o o d ______________ Cord
E le ctr icity _________ KWH
1954-66
26,200
25,400
6,287
5,825
5,218
40,000
3
26,200
25,400
6,287
5,825
5,248
40,000
3
In order to arrive at the end product which would
be shown in billions of BTU’s, the base data were
multiplied by the appropriate conversion factor. The
BTU’s for the seven base fuels were totaled for each
given year and an index was constructed using the
1957-59 average as a base.
The number of gross ton-miles of freight and pas
senger cars and contents was taken from the AAR’s
R a ilr o a d T ra n sp o rta tio n , A S ta tistic a l R e c o r d , for
the years 1948 and 1954 through 1963, and was
taken from the Interstate Commerce Commission’s
T ra n sp o rt S ta tistic s, table 162, for 1964 through
1966. An index of gross ton-miles of class I LineHaul Railways was then developed, using the
1957-59 average as the base. To arrive at the fuel
consumed by class I Line-Haul Railways per gross
ton-mile, the BTU index was divided by the gross
ton-mile index (appendix III-10).
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
82
10. Fuel consumed by Class I line-haul railways per
gross ton-mile1, selected years, 1948-66
Year
Fuel index
of BTU’s
used
(1957-59 =
100)
Index gross
ton-miles
(1957-59 =
100)
Fuel per
gross
ton-miles
(1957-59 =
100)
1948...
536.8
116.3
461.6
1954...
1955...
152.4
150.3
100.7
108.5
151.3
138.5
1956...
1957...
1958...
1959...
I960...
136.3
115.4
92.9
91.8
90.7
110.3
105.7
95.8
98.4
97.2
123.6
109.2
97.0
93.3
93.3
1961...
1962...
1963...
1964...
1965...
88.0
90.7
92.3
93.9
96.6
94.9
97.9
100.4
104.0
107.0
92.7
92.6
91.9
90.3
90.3
1966...
100.0
111.6
90.4
1Freight and passenger, cars and contents.
SOURCE: Interstate Commerce Commission and Bureau of
Labor Statistics.
Appendix IV tables
1.
Concentrations of railroad employment, 23 leading SM SA’s, March 1957 and March 1967
Employment 1
(thousand)
City and State
March
1957
March
1967
Chicago, Illinois...............................................................................................
New York City, New Y ork............................................................................
St. Louis, Missouri-Illinois.............................................................................
Philadelphia, Pennsylvania-New Jersey........................................................
Pittsburgh, Pennsylvania.................................................................................
Los Angeles-L.B., California..........................................................................
Minneapolis-St. Paul, Minnesota...................................................................
San Francisco-Oakland, California...............................................................
Kansas City, Missouri-Kansas.......................................................................
Cleveland, Ohio................................................................................................
Baltimore, M aryland.......................................................................................
Detroit, Michigan.............................................................................................
Buffalo, New Y ork...........................................................................................
Omaha, Nebraska-Iowa..................................................................................
Cincinnati, Ohio, Kentucky............................................................................
Jersey City, New Jersey (Newark)..................................................................
Houston, Texas.................................................................................................
Louisville, Kentucky-Indiana.........................................................................
Portland, Oregon-Washington.......................................................................
Sacramento, California..............................................................................•...
Washington, D.C., Maryland, Virginia.........................................................
Jacksonville, Florida........................................................................................
Boston, Massachusetts.....................................................................................
63.4
28.7
21.5
23.3
23.8
16.8
17.6
17.3
13.7
13.3
13.7
11.0
12.2
10.4
10.3
18.3
7.9
8.6
7.8
5.4
5.6
5.4
5.4
48.6
19.9
15.7
15.2
13.9
13.8
12.2
11.5
10.8
9.8
8.6
9.4
8.0
7.9
6.7
6.6
6.3
6.3
5.7
5.7
8.0
3.2
10.1
Total Employment, 23 Leading SMSA’s ...........................................
Total Railroad Employment, United States......................................
Total, 23 Leading SMSA’s as a Percent of all Railroad Employ
ment ...................................................................................................
366.4
1,121.0
259.0
698.0
32.7
37.1
1While data are generally comparable for 1957 and 1967,
some counties have been added or removed from SMSA’s in the
interim. Where comparisons were made, differences were less
than one percent.
SOURCE: From unpublished Bureau o f Labor Statistics
data for SMSA’s; total railroad employment, 1957, 1967, Office
o f Business Economics.
NOTE: Total railroad employment 1957-1967 percent
change: —37.7
SMSA railroad employment 1957-1967 percent
change: —29.3
83
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
84
2.
Changes in composition of SM SA’s, March 1957 and 1967
Chicago, Illinois..................................
St. Louis, Missouri-Illinois...............
Los Angeles-Long Beach...................
Minneapolis-St. Paul, Minnesota__
San Francisco-Oakland, California..
Kansas City, Missouri-Kansas.........
Cleveland, Ohio..................................
Baltimore, Maryland..........................
Cincinnati, Ohio, Kentucky, Indiana
Houston, Texas...........
Sacramento, California
Washington, D.C., Maryland, Virginia
Boston, Massachusetts...........................
McHenry County, added
Lake County, deleted
Jefferson County,-added 12/58
Franklin County, added 10/63
Orange County, deleted 10/63
Washington County, added 12/58
Solano County, deleted 10/63
Cass and Platte Counties, added 10/63
Geauga and Median Counties, added 10/63
Carroll and Howard Counties, added 6/59
Harford County, added 3/67
Clermont and Warren Counties, Ohio, and Boone
County, Kentucky, and Dearborn County,
Indiana, added 10/63
Brazoria, Ft. Bend, Leberty, and Montgomery Coun
ties, added 3/65
Placer and Yolo Counties, added 10/63
Loudoun and Prince William Counties, Virginia,
added 3/67
Some towns were added in 6/59 and in 10/63. Break
out of railroad data not available by towns.
Appendix V
1. Railroad unions
A.
BLE
UTU
Brotherhood of Locomotive Engineers (Independent)
United Transportation Union
B.
RASA
TDA
BBF
BMWE
BRASC 1
2
BRC
BRS
SCP
HREU2
IAM
IBEW
IBFO
RYA
SMW
TWU 2
DIST 50
UTSE
USA
GLLO
HREU
ILA
IUOE
MMP
MEBA
NMU
RMU
SIU
TWU
DIST 50
The nonoperating unions
American Railway and Airline Supervisors Association
American Train Dispatchers Association
International Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and
Helpers
Brotherhood of Maintenance of Way Employees
Brotherhood of Railway, Airline and Steamship Clerks, Freight Handlers, Express and
Station Employees
Brotherhood of Railways Carmen of America
Brotherhood of Railroad Signalmen
Brotherhood of Sleeping-Car Porters
Hotel and Restaurant Employees and Bartenders International Union
International Association of Machinists and Aerospace Workers
International Brotherhood of Electrical Workers
International Brotherhood of Firemen and Oilers
Railroad Yardmasters of America
Sheet Metal Workers’ International Association
Transport Workers Union of America, Railroad Division
International Union of District 50, Allied and Technical Workers of the United States and
Canada (Independent)
United Transport Service Employees
United Steel Workers of America
C.
BRASC
The operating brotherhoods
Marine unions in railroading
Brotherhood of Railway, Airline and Steamship Clerks, Freight Handlers, Express and
Station Employees
Great Lakes Licensed Officers Organization (Independent)
Hotel and Restaurant Employees and Bartenders International Union
International Longshoremen’s Association
International Union of Operating Engineers
International Organization of Masters, Mates, and Pilots
National Marine Engineers Beneficial Association
National Maritime Union of America
Railroad Marine Union
Seafarers International Union of North America
Transport Workers Union of America
International Union of District 50, Allied and Technical Workers of the United Sates and
Canada (Independent)
1 All
unions listed are AFL-GIO, unless otherwise designated.
Also appears in Marine Union List.
SOURCE: 34th Annual Report of the National Mediation Board (Washington, Government Printing Office, 1968) pp. 88-89.
2
85
Bibliography
I. Federal Government Publications
A.
U. S. Interstate Commerce Commission—
A Five Year Market Forecast for Commuter Railroad Cars, (Statement No. 5227), June 1952.
Accident Bulletin, No. 123, Bureau of Transport Economics and Statistics, 1955, 95 pages.
Florida East Coast Railway Company Vs. United States of America and Interstate Commerce Com
mission, U. S. District Government for the Middle District of Florida, Jacksonville Division, (Civil
Action No. 64— CIV-J), July 1964, U. S. GPO: 1964, 207 pages.
64—
Freight Commodity Statistics, class 1 railroads in the United States, 1968.
Report—Section of Railroad Safety, Bureau of Railroad Safety and Service, 1966, 37 pages.
B.
Other Federal Government Publications—
Annual Report, Railroad Retirement Board, 1949, 1967, 1968.
Bowden, Witt, Productivity, Hours and Compensation of Railroad Labor, Monthly Labor Review:
Part I, All Employees Vol. 37, No. 6, December 1933, pages 1275-1289;
Part II, Classes other than Transportation Employees Vol. 38, No. 1, January 1934, Pages
43-72;
Part III, Transportation Employees Vol. 38, No. 2, February 1934, pages 269-288.
Census of Transportation, 1963, U. S. Department of Commerce, Bureau of the Census, pages
25-45.
Congressional Record, First report on High Speed Ground Transportation Act of 1965, October 3,
1966, Volume 112, No. 167.
Feasibility and Cost of Expanded Intercity Air Service in the Washington-Boston Corridor, U. S.
Department of Commerce Clearinghouse for Federal Scientific and Technical Information, Docu
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Indexes of Output Per Man-Hour, Selected Industries, 1939 and 1947-70, U. S. Department of
Labor, BLS, 1967, (Bulletin No. 1692).
Job Patterns for Minorities and Women in Private Industry, 1966, Equal Opportunity Report No. 1,
Part II, U. S. Equal Opportunity Commission, Washington, D.C., 1968.
National Transportation Policy, U. S. Congress, Senate, Committee of Interstate and Foreign Com
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Railroad Shopcraft Factfinding Study, Labor-Management Services Administration, September 1968,
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Railroad Shopcraft Factfinding Study, Labor-Management Services Administration, appendix Vol
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Showing the Implication and the Significance of Automation in Major Switching Yards of the Rail
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Studies Relating to Railroad Operating Employees, Appendix Volume III to the Report of Presiden
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The 1963 Railroad Arbitration Act, Monthly Labor Review, Vol. 86, No. 10, pages 1187-1188,
October 1963.
87
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970’s
88
II. Books and Reports
American Railway Car Institute Market Forecasting Commitee, Projection of Freight Car Demand
Through 1975, April 1967.
Banner, Paul H., Predicting Transportation Demand, Papers of the Seventh Annual Meeting of the Trans
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113.
Barger, Harold, The Transportation Industries, 1889-1946, A Study of Output, Employment and
Productivity, National Bureau of Economic Research, New York, 1951.
Beisher, G. M., Automation— A Key to Railroad Progress, “Addresses, Panel Discussion and Workshop
Papers,” Data Systems Division Association of American Railroads, Washington, D. C., October
17-19, 1966, pages 105-106.
Bureau of Railway Economics, Yearbook of Railroad Facts, Association of American Railroads, Wash
ington, D.C.* Edition-1967, 1968, 1969.
Car and Locomotive Cyclopedia, Simmons-Boardman, New York, 1966, Volume I.
Cottrell, Fred, Technological Change and Labor in the Railroad Industry, Heath Lexington Books, Lex
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Coyne, R., “Computerization of American Railways,” Paper presented before Railway Systems and
Management Association, Chicago, Illinois, 1964.
Crecine, John P.; Moss, Leon H.; and Stucker, James, The Census of Transportation; an Evaluation,
Paper presented at the Transportation Research Forum, 1966, Richard B. Cross Company, Oxford,
Indiana, pages 87-105.
General Railway Signal Company, Centralized Traffic Control, Bulletin 169, Rochester, New York,
March 1938.
Hallmann, E. H., Statement with Regard to Job Content of Trainmen and the Effects Thereon of Tech
nological and Operational Changes, Testimony presented before the Presidential Railroad Commission,
Washington, 122 pages, 1961.
Hultgren, Thor, American Transportation in Prosperity and Depression, National Bureau of Economic
Research, Waverly Press, Baltimore, Maryland, 1948.
Mansfield, Edwin, Industrial Research and Technological Innovation; an Econometric Analysis, W. W.
Norton, New York, 1968.
Mansfield, Edwin, The Economics of Technological Change, W. W. Norton, New York, 1968.
Owen, Wilfred, The Metropolitan Transportation Problem, Brookings Institution, Washington, 1966,
266 pages.
Pell, Hon. Claiborne, Megalopolis Unbound: The Super City and the Transportation of Tomorrow,
Frederick A. Praeger, Inc., New York, New York, 166, 223 pages.
Selected Impacts of Railroad Mergers, prepared for U. S. Department of Commerce by Stanford Research
Institute, SRI Project No. 11—
4895, Menlo Park, California, May 1964.
“Survey of Computers and Computer Usage,” McGraw-Hill, April 9, 1965.
Transportation Economics; A Conference of the Universities— National Bureau Committee for Economic
Research, National Bureau of Economic Research, New York, 1965.
Ulmer, Melville J., Capital in Transportation, Communications, and Public Utilities: its form and financ
ing, Princeton, Princeton University Press, 1960.
Ward, Edward J., Potential New Technologies, Paper presented at the Transportation Reseach Forum,
Richard B. Cross Company, Oxford, Indiana, pages 325-333, 1966.
Wilbur Smith and Associates, Highway Travel in Megalopolis, New York, 1963, 186 pages.
BIBLIOGRAPHY
III.
89
Periodicals
A.
Control Engineering—
Aronson, R. L., “Clear Track for On-Line Railroad Controls,” June 1965, pages 95-96.
“Four Views of Train Control; San Francisco Tries Them All,” December 1964, Volume II,
pages 62-68.
B.
Fortune—
“Freight Cars That Pack a Competitive Wallop,” July 1965, pages 132-137.
“The 400-M.P.H. Passenger Train,” April 1965, pages 124-129.
“The Rail Route to a More Mobile America,” July 1, 1966, pages 107—
109.
C.
M odern Railroads—
Ford, Nancy, “The Great Merger Maze,” October 1966, Volume 12 Number 10, pages 72-82.
“Intro,” November 1967, pages 50, 60, 62.
Roberts, Robert, “Pennsy Metroliners Readied for Corridor,” November 1967, pages 64-65.
Shedd, Tom, “Where Do Railroads Stand on EEO?” February 1969, pages 40-42, 44-45.
“Tops: Real-Time Control Over 14,000 Miles,” December 1969. pages 47-50.
D.
Railway Age—
“ACL Sets Up a New Office Operation to Take a Letter,” December 5, 1966, pages 42—
43.
Barnette, Frank, “What it Takes to be a Growth Industry,” August 18, 1969, pages 14— 25.
16,
Interview with Thomas Goodfellow, President, AAR, “A New Research Effort for the Railroads,”
March 31, 1969, pages 30-32, 81-82.
“Microwave: There’s Dramatic Growth Ahead,” Robert McKnight, May 23, 1966, pages 18-19.
“Railroads Cite Shortage of Signal Personnel,” August 15, 1966, page 59.
“Railroads must Rethink Their Basic Goals,” February IQ, 1969, pages 14 ff.
“Remote Control Saves Money,” January 12, 1959, pages 16, 21.
“Six Axle Designs Popular as New AC-DC Diesels Reach the Roads,” October 17, 1966,
pages 24—
26.
E.
Railway Signaling and Communications—
“Automatic Car Identification,” (Special Report Part I) April 1968, pages 20, 21, 32, 34.
“Automatic Car Identification,” (Special Report Part II) May 1968, pages 13-23.
“By 1980 Railroads will have Total Information Controls,” October 1967, pages 23-26.
“Hotbox Detectors Cut Out Journal Losses on B & O,” August 1966, pages 13-15.
Kellar, W. M., Vice-President Research Association of American Railroads, interview in November
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“Railroads Keep Computers Busy,” September 1968, pages 21-32.
“Railroad Microwave has Big Future,” June 1966, page 16.
“Railway Cybernetics: Train project gets underway,” March 1969, pages 17-25.
“Railway Cybernetics: ACI gets DSD Attention,” October 1969, pages 30, 35, 37.
90
RAILROAD TECHNOLOGY AND MANPOWER IN THE 1970's
F.
The Signalman’s Journal—
“Application of Digital Computers to Solve Traffic Control Problems,” J^nuary-February 1967,
pages 18-19.
“C&NW Maintenance Crew in Step with 20th Century Signal Technology,” April 1965, pages 87-90.
“I.C.C. Decides Fate of Rule Revisions,” March 1966, pages 63-71.
G.
Traffic World—
“Northern Lines, Say they Can Save $39.7 Million Annually by Merging,” March 11, 1967,
pages 70-71.
“Rails Build Piggyback Facilities,” June 24, 1967, page 46.
H.
O ther Periodicals—
“A High-Speed Bid for Business,” Business Week, February 4, 1967, pages 126-128.
“Erie Enlarges Croxton Piggyback Yard in Jersey City,” Via Port of New York, July 1969, page 13.
Evans, R. K., “Computers: How do These Machines Relate to Railroading,” Trains, September 1967,
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“Railroads on the Automation Track,” Electronics, January 9, 1967, pages 168-170.
“Rundown on Automation,” Trains, March 1961, page 22.
“Personnel Policies in the Railroad Industry,” Higdon C. Roberts, Jr. Personnel Journal, August
1971, pages 630-36.
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